Investor: DR News
By Gordon Platt
Shandong Luoxin Pharmacy Stock Company has become the first China-based firm to trade American depositary receipts (ADRs) on the over-the-counter market’s premier platform, OTCQX International. Based in Linyi City in the eastern province of Shandong, the company develops, manufactures and sells Chinese and Western medicines, some of which are sold in bulk form. The Luoxin brand was named a “famous Chinese trademark” by the State Administration for Industry and Commerce.
Shandong Luoxin’s shares trade on the Growth Enterprise Market (GEM) of the Hong Kong Stock Exchange. Each ADR represents 10 ordinary shares.
The company selected BNY Mellon as the depositary bank and principal American liaison (PAL) for its sponsored ADR program. Viriathus Capital, a New York-based boutique investment bank associated with John Carris Investments, was named as the firm’s exclusive OTCQX adviser.
Pink OTC Markets says its OTCQX platform offers international companies listed on a qualified stock exchange in their home country the opportunity for a visible cross-listing in the OTC market without the duplicate regulatory burdens of a US exchange listing.
Shandong Luoxin plans to increase production based on market demand for 21 of its products listed in the latest State Administrative Basic Medicine Catalogue. Shandong Luoxin makes 2.5 billion tablets a year.
