Beijing Beilu Pharmaceutical Co., Ltd., a company that is focused on traditional Chinese medicines, raised 66.6 million RMB ($9.7 million) by issuing 12.5 million shares to seven investors. The largest block went to Infotech Pacific Ventures, which took down 7.5 million shares for 40 million RMB ($5.8 million). After the refinancing, Infotech was the fourth largest shareholder in Beilu, owning almost 15% of the total shares outstanding. The funding gives the company a post-money valuation of $39 million.

Infotech Pacific Investors, with offices in Beijing, Shanghai and Shenzhen, are active investors with stakes in numerous China-based IT companies. The Beilu investment appears to be the company’s first foray into the biomedical field.

Founded in 1992, Beilu touts its R&D expertise. The company will use the new capital to help it expand.

The new capital also improves the company’s financial measures. Liabilities to assets dropped from 36% to 25% after the funding, and the company’s ability to repay debt was also improved. Beilu said it is working toward listing its shares on the Growth Enterprise Market, though it was not clear whether this means the already-operational Hong Kong Growth Enterprise Market or the proposed, though still not actual, Shenzhen Growth Enterprise Market.