Key Capital Corporation advises that the Company is acquiring the Beijing-based Healthstar group of companies subject to final regulatory approvals from China authorities which is expected.

Healthstar has current revenues in the order of US$500,000 per week which is forecast to substantially increase in 2007 as the company releases three new products that have gained SFDA approval for marketing in China.

Healthstar products are marketed throughout China in a joint marketing relationship with Sinopharm, China's largest pharmaceutical distributor.

Healthstar facilities include a new state of the art 10,000 sq ft R&D Centre and 1.36 million sq ft of new, GMP certified high capacity pharmaceutical manufacturing space in Liaoning and Beijing which have the capacity to produce over 300 tons of granule product, 400 million capsules, 400 million lozenges, 150 million tons of pills and multi-million dosage units of other products.

The acquisition consideration comprises a total 80 million shares. The Company is in process of arranging a placement to raise $4 million with a further $12 million to be raised later in 2007 through a planned listing on the London AIM market which is currently in negotiation with UK advisory and brokerage interests.

Source:佚名