Why China Jo-Jo Drugstores (CJJD) Stock Is Down 70%

China Jo-Jo Drugstores Holdings Inc CJJD shares are trading lower by 72.75% to $1.30 Tuesday morning after the company announced a $7 million registered direct offering.

What Else?

China Jo-Jo Drugstores says the company entered into a definitive agreement with an institutional investor for the issuance of 2,258,888 ordinary shares, at a purchase price of $3.10 per share.

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The closing of the sale of the securities is expected to occur on or about April 20, subject to satisfaction of customary closing conditions.

Jo-Jo Drugstores intends to use the net proceeds from the offering for general corporate purposes and working capital.

According to data from Benzinga Pro, CJJD has a 52-week high of $9.65 and a 52-week low of $1.23.