October 24 -- North China Pharmaceutical (600812.SH), a maker of active pharmaceutical ingredients and agricultural chemicals, plans to issue up to 350 million shares at 8.53 yuan per share to controlling shareholder, Jizhong Energy Resources (000937), reports stcn.com, citing a company filing.

The company plans to raise a maximum of 2.99 billion yuan. After the deduction of expenses, the net amount raised would be about 2.2 billion yuan, which will mainly be used to repay bank loans, with the remainder to be used to supplement operating cash flow.

Following the proposed transaction, Jizhong Energy will become North China Pharma's largest shareholder, while the controller remains the Hebei State-owned Asset Supervision and Administration Commission.