Board Action Brings Ms. Lu's Total Cash Investment to $750,000 Since Start of 2006
LAS VEGAS, March 13 /Xinhua-PRNewswire-FirstCall/ -- China Health Holding,
Inc. (OTC Bulletin Board: CHHH), a development stage company with the goal of
becoming a leading developer, manufacturer, marketer and distributor of
pharmaceutical drugs and dietary supplements in China and worldwide, announced
today the Company's board of directors on March 12th, 2006, approved the
issuance of 5,000,000 shares of the Company's common stock to Ms. Julianna Lu,
China Health Holding's Founder and Chief Executive Officer.
The stocks were issued as consideration for the forgiveness of loans in
the aggregate amount of US$300,000 previously advanced to the Company by Ms.
Lu. As part of the transaction, the Company will issue Ms. Lu five-year
warrants to purchase 10,000,000 shares of the Company's common stock with an
exercise price of US$0.10 per share. The Company will also issue ten-year
warrants to purchase 10,000,000 shares of the Company's common stock with an
exercise price of US$0.20 per share. The warrants have piggy back registration
rights and voting rights with respect to the shares of common stock issuable
upon exercise of the warrants. The Company claims an exemption from the
registration requirements of the Securities Act of 1933, as amended (the "Act")
with respect to the foregoing, pursuant to Section 4(2) of the Act and/or
Regulation D promulgated thereunder.
With the latest loan forgiveness, Ms. Julianna Lu now has invested a total
of $750,000 in cash in China Health Holdings since the beginning of 2006 in
exchange for stocks and warrants. This amount includes US$150,000.00 for the
purchase of 1,000,000 Series A Preferred Stocks in early 2006; and A total of
US$300,000.00 for the purchase of 10,000,000 common stocks, in October, 2006,
as part of the transaction, the Company has issued Ms. Lu five-year warrants
to purchase 10,000,000 shares of the Company's common stock with an exercise
price of US$0.10 per share and issued additional ten-year warrants to purchase
10,000,000 shares of the Company's common stock with an exercise price of
US$0.20 per share. All the warrants have piggy back registration rights and
voting rights with respect to the shares of common stock issuable upon
exercise of the warrants, as announced in October, 2006. As of December 12
2006, Ms. Lu held more than 63.75% of the Company's total issued and
outstanding stock, including 1,250,000 shares of Series A Preferred Stock. In
next 10 years, Ms. Julianna Lu's warrants exercise will bring the Company for
a total US$6,000,000.00 cash investment.
As the Company's Founder and CEO, Ms. Julianna Lu, has substantially
contributed to China Health Holding financially and creatively and is
committed to developing it into a successful global pharmaceutical corporation
with the vision of improving the world pharmaceutical industry.
"As a fast growing, highly fragmented pharmaceutical industry, we believe
that China's pharmaceutical industry presents strong investment
opportunities," said Ms. Julianna Lu. "In fact, last year China exported
traditional Chinese medicine, or TCM, to 164 countries and regions around the
world with export earnings reaching an all-time high of US$830 million,
according to the China Association of Traditional Chinese Medicine."
"With a pipeline of signed acquisitions deals with China Major
Pharmaceutical Companies and an experienced management team that truly
understands the Pharmaceutical Industry, We are confident that China Health
Holding will reach our development goals and deliver strong value to our
shareholders," added Ms. Julianna Lu, the Company's Founder and CEO.
The Company is continuing to prepare for a listing on a larger exchange
such as NASDAQ or American Stock Exchange in the next 12 to 18 months. In the
next 12 to 48 months approximately, the Company plans to continue partnering
with China SFDA certified drug producers, China GMP accredited manufacturing
facilities, research and development centers and Universities. Further pending
acquisitions are expected to bring total assets to US$100 million, gross
revenue of approximately US$100 million and an annual net income of US$10 to
15 million in next 12 to 48 months approximately.
About China Health Holding
China Health Holding, Inc. is a development stage company with the goal of
becoming a leading developer, manufacturer, marketer and distributor of
pharmaceutical products and dietary supplements in China and worldwide. It has
extensive expertise in the field of traditional Chinese medicine and the
Chinese pharmaceutical industry. Its immediate goal is the profitable
penetration of the growing global and China pharmaceutical industry and market
through acquisitions of major pharmaceutical companies in the People's
Republic of China and worldwide. Its long-term plans include the development
of a pharmaceutical drug pipeline and technology based on its knowledge of
traditional Chinese medicine and the pharmaceutical industry in the People's
Republic of China.
The company has two wholly-owned subsidiaries: (i) China Health World
Pharmaceutical Corporation, which will develop, manufacture and commercialize
natural medications for diseases and conditions related to diabetes,
cardiovascular disease and neurological disorders; and (ii) China Health World
Trade Corporation, which will develop China Health's retail/franchise
infrastructure along with worldwide branding, multimedia marketing and multi-
channel distribution to global customers and markets.
China Health owns the exclusive worldwide rights to a total of 134
proprietary natural herbal medicinal products/formulas in two natural herbal
medicinal product lines: King of Herbs and Taoist Medicinal. Please visit
http://www.chinahealthholding.com for the Company's profile.
For worldwide investor and media inquiries, please contact:
China Health Holding, Inc. (Las Vegas)
Mr. Xiaofei Yu
The President/Executive Director
Corporate Development
Tel: +1-604-608-6788 and +1-877-883-0979
Tel: +86-1370-133-1287 (Beijing, China) (Text Message)
Email: info@chinahealthholding.com
http://www.chinahealthholding.com
Mr. Rory Macpherson
Senior Associate
Ogilvy Public Relations Worldwide
+86-10-8520-6553
Email: rory.macpherson@ogilvy.com
Safe Harbor Statement: To the extent that statements in the press release
are not strictly historical, including statements as to revenue projections,
business strategy, outlook, objectives, future milestones, plans, intentions,
goals, future financial conditions, future collaboration agreements, the
success of the Company's development, events conditioned on stockholder or
other approval, or otherwise as to future events, such statements are forward
looking, all forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by the cautionary
statements and any other cautionary statements, which may accompany the
forward-looking statements, and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements contained in this release are subject to certain
risks and uncertainties that could cause actual results to differ materially
from the statements made. Other important factors that could cause actual
results to differ materially include the following: business conditions and
the amount of growth in the Company's industry and general economy;
competitive factors; ability to attract and retain personnel; the price of the
Company's stock; and the risk factors set forth from time to time in the
Company's SEC reports, including but not limited to its annual report on Form
10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. In
addition, the company disclaims any obligation to update or correct any
forward-looking statements in all of the Company's press releases to reflect
events or circumstances after the date hereof.
