AXM Pharma Receives $2.65 Million Investment From Beida Wei Ming Bioproduct Co., Ltd.

  
    
  
  
    
      AXM Pharma (OTC: AXMP) announced today that it has entered into an 
      agreement with Beida Wei Ming Bioproduct Co., Ltd. (“Beida 
      Wei”) under which Beida Wei will invest $2.65 
      million in the Company through a convertible debt financing. The Company 
      received the first $200,000 tranche, and will receive additional 
      payments upon achieving certain milestones. The funding is convertible 
      into common stock at the investor’s election 
      at $1.25 per share. Proceeds from the financing will be used to invest 
      in production and product development, and for general corporate 
      purposes. Beida Wei is a subsidiary of Beida Wei Ming Bio-Engineering 
      Group Inc. Yuyuan Holding Company, is one of the major shareholders of 
      Beida Wei Ming, which is a Shenzhen Stock Exchange (SSE 000408) listed 
      company.
    
    
      “We are pleased to have entered into a funding 
      agreement with this experienced and supportive investor,” 
      said Wang Weishi, Chairman and CEO of AXM Pharma. “Proceeds 
      from this financing will allow us to invest in our pharmaceutical 
      business to support its growth, and to make the necessary filings in the 
      United States to seek a Bulletin Board listing.”
    
    
      About AXM Pharm
    
    
      AXM Pharma, Inc. is a global pharmaceutical company engaged in the 
      production, marketing and distribution of pharmaceutical products in 
      China. The Company produces, markets and distributes medicines in 
      various dosages and forms in most areas of medicinal treatment, as well 
      as herbal remedies, vitamins and adjunctive therapies. Through its 
      wholly owned subsidiary, AXM Pharma Shenyang, Inc., the Company has 
      utilized its production and distribution capabilities to establish a 
      pharmaceutical operation focused on supplying the growing demand for 
      drugs and on the opportunities for proprietary branded products in 
      specific niche categories.
    
    
      Safe Harbor Statement under the Private Securities Litigation Reform Act 
      of 1995: The statements contained in this news release include certain 
      predictions and projections that may be considered forward-looking 
      statements under securities law, including the statements regarding the 
      Company's opportunities for future growth. These statements involve a 
      number of important risks and uncertainties that could cause actual 
      results to differ materially including, but not limited to, the 
      performance of joint venture partners, obtaining regulatory approvals to 
      market the Company's products, the uncertainties associated with 
      distributing products in a developing country such as China, the 
      availability of cash to meet near term requirements as well as other 
      economic, competitive and technological factors involving the Company's 
      operations, markets, services, products and prices. With respect to AXM, 
      except for the historical information contained herein, the matters 
      discussed in this news release are forward-looking statements involving 
      risks and uncertainties that could cause actual results to differ 
      materially from those in such forward-looking statements. Potential 
      risks and uncertainties include, but are not limited to, AXM's extremely 
      limited operating history, uncertainties related to the Company's access 
      to additional capital, competition and dependence on key management.