Northern, WI 6/22/12 (StreetBeat) -- AlphaRx Inc. (OTCBB:ALRXD) 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.
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 crack.
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.
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