Zhejiang Ausun Pharmaceutical Co., Ltd. (SHSE:603229) announced that it has entered into an agreement to issue more than 22,400,000 A shares for gross proceeds of not more than CNY 420,000,000 on July 24, 2020. The transaction will include participation from 35 specific investors including Zheng Zhiguo; chairman of the company for CNY 100,000,000. All securities to be issued in the transaction will be subject to a lock-up period of 18 months from the date of issuance. The transaction has been approved in the 19th meeting of the 2nd board of director and in the 18th meeting of the 2nd supervisory board of the company, and is subject to the approval from the shareholders of the company and China Securities Regulatory Commission. Post the transaction, Zheng Zhiguo will own 139,699,733 shares in the company and its stake will decrease from 59.99% to 56.70% in the company. The issuance price of the share will not be less than 80% of the average trading price of the company’s shares on the 20 trading days before the pricing base date. All the securities subscribed by Zheng Zhiguo shall not be transferred within 18 months from the end of the issuance and to other subscribers will not be transferred within six months from the date of the end of this issuance.