Biostar Pharmaceuticals (NASDAQ:BSPM)

XIANYANG, China, April 4, 2012 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM) ("Biostar" or "the Company"), a PRC-based developer, manufacturer and marketer of pharmaceutical and health supplement products in China for a variety of diseases and conditions, today announced that its Board of Directors unanimously approved a reverse split of its common stock at a ratio of 1-for-3, with anticipated trading on the post-split basis on NASDAQ commencing at the open of the stock market on April 4, 2012.

Accordingly, as of the effective date of the reverse split, each 3 shares of issued and outstanding common stock and equivalents will be converted into 1 share of common stock. In addition, the common stock will trade under a new CUSIP number. The Company's ticker symbol will remain unchanged (although NASDAQ may append a fifth-letter identifier "D" to indicate the completion of the reverse stock split, and after a 20 trading-day period following effectiveness of the reverse split, the ticker symbol will revert to "BSPM"). The reverse stock split will become effective upon the filing of the Company's Articles of Amendment to its Articles of Incorporation with theState of Maryland. As noted above, the foregoing action has been duly approved by unanimous written consent of Biostar's Board of Directors pursuant to the Maryland General Corporation Law, without stockholder approval requirement.

As a result of the reverse stock split, the number of outstanding common shares will be reduced to approximately 9,398,892. Fractional stockholdings will be rounded up to the nearest whole number. The reverse stock split will affect all stockholders uniformly and will not affect any stockholder's ownership percentage of the shares of the Company's common stock. Biostar stockholders should contact their broker or Biostar's transfer agent, Interwest Stock Transfer Company at (801) 272-9294, for instruction relating to the reverse stock split procedures.

The purpose of the reverse stock split is to raise the per share trading price of the Company's common stock to regain compliance with the minimum $1.00 continued listing requirement for the listing of its common stock on The NASDAQ Global Market. As previously announced, in order to maintain the Company's listing on Nasdaq, on or before April 23, 2012, the Company's common stock must have a closing bid price of $1.00 or more for a minimum of 10 prior consecutive trading days. There can be no assurance that the reverse stock split will have the desired effect of raising the closing bid price of the Company's common stock prior to April 23, 2012, to meet this requirement.

BioStar also provided preliminary results for its share repurchase program. As of the close of business on June 10, 2011, Mr. Wang had repurchased approximately 115,000 shares at an average price per share of US$1.26. As background, BioStar announced on May 25, 2011, that its Board of Directors has approved Chief Executive Officer and Chairman of the Board, Mr. Ronghua Wang, to adopt a repurchase of up to 200,000 shares of the Company's common stocks effective from June 1, 2011 to November 11, 2011. For more information related to Mr. Wang's repurchase, please refer to the Company's press release "Biostar Pharmaceuticals, Inc. Approves Share Repurchase Plan; CEO Adopts 10b5-1 Trading Plan" dated May 25, 2011.

XIANYANG, China, May 25, 2011 /PRNewswire-Asia-FirstCall/ -- Biostar Pharmaceuticals, Inc. (NASDAQ GM: BSPM), Xianyang-based manufacturer of a leading over-the-counter Hepatitis B medicine, Xin Aoxing Oleanolic Acid Capsules ("Xin Aoxing Capsules"), and a variety of pharmaceutical products, today announced that, following the Board's approval, the Company's Chief Executive Officer and Chairman of the Board, Ronghua Wang, has adopted a stock trading plan in accordance with the guidelines specified by Exchange Rules 10b5-1 and 10b-18 and other legal SEC legal requirements under the Exchange Act.   

The Plan is effective as of June 1, 2011 and is valid through November 11, 2011. Under this plan, Mr. Wang may purchase up to 200,000 shares of the Company's common stock, subject to certain conditions. The timing and actual number of shares repurchased will depend on a variety of factors including regulatory restrictions on price, manner, timing, and volume, corporate and other regulatory requirements and other market conditions in an effort to minimize the impact of the purchases on the market for the stock. There can be no assurance that any shares will be repurchased either through plan or otherwise.

Rule 10b5-1 permits corporate officers, directors and others to adopt written, pre-arranged stock trading plans when they are not in possession of material, non-public information. These plans allow insiders to have shares bought or sold for their accounts over a period of time regardless of any material, non-public information they may receive after adopting their plans.

Mr. Wang stated, "The Board's authorization of the share repurchase plan reflects our confidence in the strength and confidence we have in the fundamental strength of our business. We remain strongly committed to maximizing the long-term shareholder value and realizing the full potential of our business and operations."

As of May 25, 2011, Biostar had approximately 27.4 million shares of common stock outstanding.