CBI exercises $1 million put option with Venturepharm Laboratories

Under the terms of the put agreement, Commonwealth Biotechnologies (CBI) sold 463,426 shares of common stock to Venturepharm Laboratories (VPL) at a price of $2.15 per share, a 56% premium to the June 30, 2008 share price of $1.38.

In consideration of the sale of shares, CBI received $500,000 in cash and 2.22 million of VPL’s ordinary shares. Such number of shares equals $500,000 of equity value, based on Venturepharm’s price of HK$1.7469 (at exchange rate of $1/HK$7.79) per ordinary share.

Paul D’Sylva, CEO of CBI, said: “The capital raised through the put right will be used primarily to further expand and promote our new Chinese joint venture business, Venturepharm Asia.

“The additional funds raised will contribute to bringing our new facilities on-line and to launching a marketing campaign to promote our expanded service offerings to the pharmaceutical and biotechnology industries.”