Skystar Bio-Pharmaceutical Announces $5 Million Registered Direct Offering

Skystar Bio-Pharmaceutical Announces $5 Million Registered Direct Offering 
XI'AN, CHINA -- (Marketwired) -- 07/16/14 --  Skystar
Bio-Pharmaceutical Company (NASDAQ: SKBI), a China-based manufacturer
and distributor of veterinary medicine, vaccines, micro-organisms and
feed additives, today announces that it has entered into a definitive
agreement with a dedicated healthcare institutional investor to
purchase an aggregate of $5,000,000 of registered securities of the
Company in a registered direct offering. Pursuant to the terms of the
agreement, the investor shall purchase from the Company 790,514
shares of common stock and warrants to purchase up to 197,629 shares
of common stock for an aggregate purchase price of $4,000,000 and
1,000 shares of convertible preferred stock and warrants to purchase
up to 49,407 shares of common stock for an aggregate purchase price
of $1,000,000.  
The shares of common stock have a purchase price of $5.06 per share.
The convertible preferred stock has an aggregate stated value of
$1,000,000 and a conversion price of $5.06 and carries no dividend
rights. The investor shall receive warrants to purchase up to an
aggregate of 247,036 shares of common stock with an exercise price of
$6.25 per share, which warrants will be exercisable six months
following issuance and will expire twelve months from the initial
exercise date.  
The Company shall use a portion of the proceeds of the offering for
acquisitions, licenses of new vaccine and aquaculture products,
research & development and other general corporate purposes. 
The closing of the offering is expected to take place on or about
July 21, 2014, subject to the satisfaction of customary closing
H.C. Wainwright & Co., LLC acted as the exclusive placement agent in
connection with this offering.  
The shares of common stock, shares of convertible preferred stock,
and warrants described above are being offered by the Company
pursuant to a shelf registration statement (File No. 333-192657)
which became effective on December 18, 2013. The securities may be
offered only by means of a prospectus, including a prospectus
supplement, forming a part of the effective registration statement.  
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein. There shall not be any offer, solicitation of an offer to
buy, or sale of securities in any state or jurisdiction in which such
an offering, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. The Company will file a prospectus supplement
with the SEC relating to the common stock, convertible preferred
stock and warrants, and following such filing, copies of the
prospectus supplement and the accompanying base prospectus relating
to this offering may be obtained at the SEC's website at, or from H.C. Wainwright & Co., LLC by e-mailing 
About Skystar Bio-Pharmaceutical Company 
Skystar is a China-based developer, manufacturer and distributor of
veterinary healthcare and medical care products. Skystar has four
product lines: veterinary medicines, probiotics, vaccines and feed
additives formulated and packaged in house across several modern
manufacturing and distributions facilities. Skystar's distribution
network includes almost 3,000 distribution agents of which 360 are
franchised stores with exclusivity agreements covering 29 provinces
throughout China. For additional information, please visit  
Safe Harbor Statements 
Statements contained herein that are not based upon current or
historical fact are forward-looking in nature. Such forward-looking
statements reflect the Company's expectations about its future
operating results, performance and opportunities that involve
substantial risks and uncertainties. When used herein, the words
"anticipate," "believe," "estimate," "upcoming," "plan," "intend" and
"expect" and similar expressions, as they relate to Skystar, or its
management, are intended to identify such forward-looking statements.
These forward-looking statements are based on information currently
available to the Company and are subject to a number of risks,
uncertainties, and other factors that could cause the Company's
actual results, performance, prospects, and opportunities to differ
materially from those expressed in, or implied by, these
forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to, the possibility
that the closing conditions to the offering will not be satisfied,
the risk that the offering might not be completed on the expected
timeline or at all, the risk that the Company will raise fewer
proceeds than expected, the risk that economic and other
considerations will cause the Company to use the proceeds of the
offering other than as currently expected, and such other factors,
including risk factors, discussed in the Company's Annual Report on
Form 10-K for the year ended December 31, 2013 and subsequent public
filings. Except as otherwise may be required under the law, the
Company does not undertake any obligation to release publicly any
revisions to any forward-looking statements. 
Skystar Bio-Pharmaceutical Company
Scott Cramer
Director - Corporate Development & U.S. Representative 
(407) 645-4433 
Christopher Chu
(212) 889-4350 
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