ALTACHEM PHARMA LTD. TO PURCHASE 75% EQUITY TO
OWN 100% OF HUA GOA PHARMACEUTICAL PELLET
CORE COMPANY LOCATED IN SHANGHAI, CHINA
News Release
June 20, 2002
For Immediate Release
EDMONTON, ALBERTA - Mr. Warren Jackson, President and CEO of Altachem Pharma Ltd., is pleased to announce the signing of an equity assignment contract to purchase the 75% ownership of Shanghai Hua Gao Pharmaceutical Pellet Core Co. Ltd. from our partners, Shanghai Jaingwan Industrial and Commercial Company.
Upon receiving all the necessary approvals from the various Chinese authorities, Altachem Pharma Ltd. will own 100% of Shanghai Hua Gao Pharmaceutical Pellet Core Co. Ltd. (SHGP), which will be classified as a 100% foreign owned company in the Peoples Republic of China.
The consideration for the 75% equity is $4,500,000 renminbis, which is equivalent to approximately $875,000 CDN. Currently, SHGP has approximately $1,100,000 CDN of depreciated assets and approximately $250,000 CDN in cash and accounts receivable plus a business license to manufacture and sell the pellet core product. An application has been made to the Chinese Authority for the company to advance to Phase II of the joint venture, which is to manufacture and sell pharmaceutical products, contract technical research and development services with respect to Altachem's products as well as contract research and development services for other pharmaceutical companies wanting to get their products approved for sales and distribution in China.
Mr. Jackson stated, "With China joining the World Trade Organization it creates a great opportunity for Altachem Pharma and our shareholders as well as the companies in China."
Altachem Pharma Ltd. is a publicly traded (AAF: TSX Venture Exchange) Alberta-based pharmaceutical company committed to the development and commercialization of new pharmaceutical products to enrich and prolong the lives of people. The Corporation is developing a multi-tiered, integrated approach for the treatment of HIV/AIDS and Cancer. The lead products of the Corporation are based on its two proprietary drugs: ACP- HIP and HB. The Corporation's manufacturing facility is certified compliant with internationally recognized quality systems standards, ISO 9002:1994, ISO 13488:1996 and EN 46002:1997.
For additional information, contact:
Roger Andrews, Investor Relations
Altachem Pharma Ltd.
Tel.: (780) 486-8331(Ext. 331)
Toll-free: (877) 502-5939
Fax : (780) 448-1436
E-mail: roger@altachempharma.com
Web site: www.altachempharma.com
Certain information contained in this press release may be forward-looking and is subject to unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. This is neither an offer to buy or sell a security. For informational purposes only, from sources deemed to be reliable.
"TSX Venture Exchange has neither approved nor disapproved of the information contained herein."
altachempharma.com |
