GUANGZHOU, China, March 4, 2011 /PRNewswire-Asia/ -- China Medicine Corporation (OTC Bulletin Board: CHME) (the "Company"), a leading manufacturer, developer and distributor of Western pharmaceuticals, traditional Chinese medicines ("TCM"), and other health products in the People's Republic of China, today announced that the Board of Directors (the "Board") adopted, subject to stockholder approval, the 2011 Long-Term Incentive Plan (the "2011 Incentive Plan"), covering a maximum of 4 million shares of common stock, par value $0.0001 per share, of the Company (the "Common Stock"). The plan provides for the grant of incentive and non-qualified stock options, stock appreciation rights, restricted shares and other equity-based incentives to employees, directors, and consultants.
The 2011 Incentive Plan is designed to further and promote the interests of the Company, its subsidiaries and its shareholders by enabling the Company and its subsidiaries to attract, retain and motivate existing and prospect employees, directors and consultants, and to align the interests of those individuals and the Company's shareholders.
The Board's Compensation Committee (the "Compensation Committee") will administer the 2011 Incentive Plan, review with management the adoption, amendment and termination of the 2011 Incentive Plan, and approve grants and awards under the 2011 Incentive Plan. In the absence of the Compensation Committee, the 2011 Incentive Plan will be administered by the Board. Each participant receiving an award under the 2011 Incentive Plan will enter into an award agreement (the "Award") with the Company in a form specified by the Compensation Committee. Each such participant shall agree to the restrictions, terms and conditions of the Award set forth therein and in the 2011 Incentive Plan.
Pursuant to the 2011 Incentive Plan, on February 25, 2011 the Company granted various employees of the Company non-qualified stock options to purchase an aggregate of 500,000 shares of Common Stock at $1.80 per share. The option grants are subject to stockholder approval of the 2011 Incentive Plan.
The company's new incentive plans are further described in an exhibit to the Form 8-K that the company filed today with the Securities and Exchange Commission.
About China Medicine Corporation
China Medicine Corporation, a vertically integrated enterprise with a research and development centre, manufacturing facility and well established sales network, engages in the production and distribution of prescription and over the counter drugs, traditional Chinese medicine products, herbs and dietary-supplements, medical devices, and medical formulations in China. The Company is developing a number of proprietary products for a variety of indications, including oncology, high blood pressure and toxin removal from food and animal feeds. For more information, please visit the Company's website at http://www.cmc621.com. The Company routinely posts important information on its website.
Safe-Harbor Statement
This press release contains forward-looking statements concerning the Company's business and products. The Company's actual results may differ materially depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, obtaining regulatory approval for new products, government support for rural health care, competition from existing and new competitors, changes in technology, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Medicine Corporation undertakes no duty to revise or update any forward-looking statement to reflect events or circumstances after the date of this release.