AlphaRx Announces New Advantageous Corporate Developments
HONG KONG, Nov. 11 /PRNewswire-FirstCall/ - (OTCBB: ALRX) is pleased to announce that the Company is undergoing expansive structural growth. As the Company has continued to evolve with the advancement of their revolutionary pharmaceutical candidates, AlphaRx has explored strategic partnerships, and consequently entered into an agreement to acquire Pacific Orient Capital Inc. which is expected to subsequently merge with AlphaRx Canada Limited, a wholly owned subsidiary of the Company.
Pacific Orient Capital Inc. is a shell company listed on the TSX Venture Exchange, under the symbol of AAQ.P. Prior to the completion of the merger with AlphaRx Canada Limited, Pacific Orient had not commenced any commercial operations and does not have any assets other than cash. Upon completion of the merger which is expected to take place on or about December 15, 2010, the combined entity will change its name to Pacific Orient BioPharma Group ("POBG") and intends to become a notable specialty pharmaceutical company that focuses on the development, marketing and distribution of cutting edge pharmaceuticals and medical products for China and other emerging markets.
POBG is slated to acquire Indaflex from the Company, one of AlphaRx's flagship technologies, for the price of C$3.3M, payable by 8,250,000 POBG shares. Among the terms of the acquisition are the predominantly International rights (excluding US, Canada and Europe) to the development and marketing of Indaflex, which will be assumed by POBG.
As POBG is positioned within the corporate structure, the Company will conduct a private placement of POBG shares at a price of $0.40 per share, for a maximum value of C$1.5 million dollars. In connection with the offering, Pacific Orient has engaged Mackie Research Capital Corporation to act as placement agent.
Upon completion of the merger and private placement, POBG will have 14,000,000 million shares outstanding of which 8,250,000 shares will be owned by AlphaRx International Holdings Limited ("AIH"). AIH is a corporation incorporated under the laws of the British Virgin Islands. AIH is 80% owned by AlphaRx Inc. and 20% owned by Ruby Hui, the proposed President, CEO and director of POBG. In addition, the Company has nominated Mr. Conroy Cheng as an independent director of POBG.
Mr. Cheng, is a board director of Chow Tai Fook Enterprises Limited. The Chow Tai Fook Group is a substantial private enterprise owned by the Cheng family, with a total market value over US$32 Billion. The Group's businesses primarily focus on mainland China and Hong Kong followed by the rest of the world. Its worldwide work force totals more than 100,000 employees. Mr. Cheng was recently appointed as an executive director of New World Development Company (Hong Kong stock code: 17), a Hong Kong-based leading conglomerate.
China's drug market is expected to expand at about 22% annually over the next five years and is poised to become the world's third largest pharmaceutical market by 2013. POBG is well positioned to create a highly focused, specialty pharmaceutical company with a mandate to achieve substantial revenues from the China market in the near term.
The Company remains focused on the progression of GAI-122, its revolutionary investigational neuroprotective agent. Advancement of the clinical trials are moving forward towards its next milestone, with the filing an Investigational New Drug application scheduled for June 2011, to begin human trials in China.
GAI-122, an investigational, injectable nanoemulsion of a Mitochondria-targeted neuroprotective agent formulated with AlphaRx's proprietary drug delivery technology, and has been shown to provide significant neuroprotection in multiple in vitro and in vivo animal studies, suggesting that this injectable nanoemulsion formulation has the potential to effectively treat patients with acute ischemic stroke or to prevent postoperative delirium. Mitochondria are intracellular structures that are responsible for generating energy within all cells and play an important role in mediating brain cell function and survival. Mitochondrial dysfunction has been linked to Stroke, Alzheimer's and Huntington's diseases. It is thought that GAI-122 facilitates Adenosine Triphosphate (ATP) production, protecting cell membranes and mitochondria from oxidative damage and, in particular, brain mitochondria from swelling.
About AlphaRx Inc.
AlphaRx is a specialty pharmaceutical company dedicated to developing proven therapies by reformulating FDA approved and marketed drugs which through the application of its proprietary site-specific nano drug delivery technology, offers improved medical benefits and a potential for significant commercial product development. The Company's product candidates address various pharmaceutical markets, including inflammation, stroke and pneumonia.
Forward Looking Statements: This release contains forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product development and acceptance, manufacturing, competition, regulatory and/or other factors, which are outside the control of the companies.
SOURCE AlphaRx Inc.
Posted: November 2010