American Oriental Bioengineering Announces Acquisition Of Soybean Protein Peptide Operation
HARBIN, China, -- American Oriental Bioengineering, Inc. (OTC Bulletin Board: AOBO - News), a leading producer and developer of bioengineered products and Chinese medicine in China, today announced it has acquired a 100% ownership stake in a large capacity soybean peptide manufacturing plant, the exclusive rights to market and sell several medically functional soybean peptide products and the ownership rights to a Chinese patent-pending process for the extraction and production of soybean peptides (the "Protein Peptide Project").
The Company will obtain ownership of the Protein Peptide Project in exchange for issuing 20,284,810 shares of Common Stock and 1,000,000 shares of Class A Preferred Stock. The value of the Common Stock to be issued is $3,205,000, or $0.158 per share, which represents the average closing price of the Company's stock for the five-day period from August 19 to August 23, 2002. The Company has filed a Schedule 14C Information Statement Pursuant to Section 14(c) of the Securities Exchange Act of 1934. The date of closing is expected be in 20 calendar days following the filing of the 14C.
The acquisition will increase the issued and outstanding equity of the Company to 30,425,827 shares of Common Stock and 1,000,000 shares of Preferred Stock. The issuance shall be made approximately 20 calendar days after the 14C is filed with the Securities and Exchange Commission and mailed to the shareholders of the Company.
The assets being acquired were developed by Shujun (Tony) Liu, the Company's President, under a separate development program which employed a team of more than twenty biochemists and biologists working in conjunction with Harbin Medical University in Harbin City, within the Heilongjiang Province in the People's Republic of China. The assets being acquired include a soybean peptide manufacturing plant with an annual capacity of 1,000 tons of product, the exclusive marketing and sales rights to several functional soybean protein peptide medical tablets and powder-based products, and full ownership rights on a Chinese patented process for a more efficient extraction and production of soybean peptides.
Soybean peptides are traditionally derived from soybeans through biochemical engineering processes which include the cutting, decomposition, conversion and synthesis of soybean protein. Soybean peptide production yield distinct enzymes that have diverse biological functions and combine the nutrition of soybean protein with important biological benefits. Experiments have shown that the soybean peptide can lower blood pressure and blood fat levels, enhance immunity, lower cholesterol, prevent cardiac and brain blood vessel diseases and inhibit the growth of tumors.
Soybean Peptides can be used widely in general food and health food products, sports foods, medicines, the fermentation industry and in environmental protection applications. All soybean peptides have been shown to be easily absorbed by the body, and can also be used as an additive in various foods and beverages including milk, tea and coffee.
Tony Liu, President of AOBO, made the following comments concerning the Company's operations: "We are very pleased with the potential revenue opportunities presented by our recently completed acquisition. This acquisition will support our recent progress in developing and test marketing additional nutritional products for Asia's large and growing health products markets. We are well-positioned to take advantage of the increased demand for traditional Chinese medicine, as well as the significant opportunities presented for marketing our newly developed bioengineered products internationally. Additionally, as we recently announced, we are working to build foreign distribution agreements in order to commence sales in the U.S and Europe."
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering, Inc., formally know as Harbin Three-Happiness Bioengineering Co., Ltd. was founded in 1994. The Company has become a leading producer and developer of bioengineered products and Chinese medicine in China, and utilizes proprietary processes that give it advantages in the manufacture and formulation of some of its products. The Company is engaged in the development and production of nutritional products and Chinese medicine, and has proprietary processes that give it advantages in the manufacture and formulation of some of its products. Important relationships with Harbin University of Medical Sciences, the Ocean Research Institute of China Academy of Sciences and the Shenyang Ecological Research Institute of China Academy of Sciences support the creation of an evolving pipeline of new and improved products. The Company has a total of 150 employees, of which 70 are involved in sales and marketing and 20 are dedicated to research.
Safe Harbor Statement
Except for the historical statements made herein, the statements made in this release are forward-looking statements, including: "We are well-positioned to take advantage of the increased demand for traditional Chinese medicine, as well as the significant opportunities presented for marketing our newly developed bioengineered products internationally" and "we are working to build foreign distribution agreements in order to commence sales in the U.S and Europe." Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission.
Harvey Goralnick/David Zazoff
FOCUS Partners LLC