HONG KONG, June 21, 2012 (GLOBE NEWSWIRE) -- AlphaRx Inc.
(OTCBB:ALRXDOB) is pleased to announce that it has signed a binding
letter of intent to acquire all of the issued and outstanding shares of
UMeLook Holdings Limited ("UmeLook"). The transaction is expected to
close on or before August 15, 2012.
UMeLook is a digital media startup with an intense focus on China.
UMeLook's first product is a global online video distribution platform
tapping into the power of full motion video, helping advertisers large
and small to tap into a massive market while having no competitors. If
a picture is worth a thousand words, a video message can be worth
millions in revenues. UMeLook is releasing a beta site www.umelook.com
for public testing in China and the USA simultaneously.
YouTube and many other popular video sites are blocked by China's
"Great Firewall". UMeLook is uniquely positioned to offer advertisers
the ability to use their existing promotional video assets to access
mainland China consumers. Marketers spent $7.4 billion on online
marketing in China in 2011, representing 13.5% of total media spending.
That was up from $5.1 billion, or 10.6% of the total, spent in 2010.
More than 60% of China's approximately half billion internet users
watch online videos, equivalent to about 325 million users in the
second half of 2011. As the number of China's internet users grows, so
will the online video market. Chinese are spending much of their time
online -- an average three hours a day, compared with two hours
watching television, according to a study conducted last year by
Starcom Mediavest Group. The statistic is the same for consumers even
in the less developed, lower-tier markets that brands are keen to
The acquisition of UMeLook is to be completed as a share exchange
through the issuance of 70,000,000 common shares of AlphaRx Inc. to the
shareholders of UMeLook at a deemed price of $0.30 per share in
exchange for all of the issued and outstanding shares in the capital of
UMeLook. The common shares to be issued pursuant to the acquisition
will not be registered for sale under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") and will be subject to
restrictions on transferability and resale and may not be transferred
or resold except as permitted under SEC guidelines.
Forward Looking Statement
Statements in this press release that relate to the Company's
expectations with regard to the future impact on the Company's results
from new products in development are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are subject to risks and uncertainties. Words such as
"expects," "intends," "plans," "may," "could," "should," "anticipates,"
"likely," "believes" and words of similar import also identify
forward-looking statements. Forward-looking statements are based on
current facts and analyses and other information that are based on
forecasts of future results, estimates of amounts not yet determined
and assumptions of management. Readers are urged not to place undue
reliance on the forward-looking statements, which speak only as of the
date of this release since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond our
control and which could, and likely will, materially affect actual
results, levels of activity, performance or achievements. We assume no
obligation to publicly update or revise any forward-looking statements
in order to reflect any event or circumstance that may arise after the
date of this release, even if new information becomes available in the
future. For a more detailed description of the risk and uncertainties
affecting the Company, reference is made to the Company's reports filed
from time to time with the Securities and Exchange Commission.
CONTACT: AlphaRx Inc.