Avalon Globocare Corporation (NASDAQ:ALBT) announced on Monday that it had acquired the company. RPM Interactive Co., Ltd.a generative artificial intelligence software company, through an all-stock transaction.
The acquisition is aimed at expanding Avalon's digital marketing capabilities and strengthening its balance sheet.
The transaction includes RPM's automated short-form video technology and is expected to increase Avalon's equity above the minimum $2.5 million required for Nasdaq listing.
transaction structure
RPM has been merged into a newly formed wholly owned subsidiary, Avalon Quantum AI, LLC. Avalon will issue 19,500 Series E non-voting convertible preferred shares to determine the value of the transaction. $19.5 million.
These shares may be converted into common stock at a price of $1.50 per share on or after May 12, 2026, subject to stockholder approval and applicable ownership restrictions.
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RPM's “Catch-Up” SaaS platform automates the creation and distribution of short-form videos, enabling Avalon to rapidly produce branded content, increase engagement, and efficiently advertise.
Source clips, generate AI voiceovers and avatars, and publish content to major platforms. Avalon plans to commercialize the platform early next year.
strategic rationale
Avalon plans to use its AI platform to support marketing. Keto Airan FDA-registered breathalyzer designed to help consumers track their health and metabolic health.
“The acquisition of RPM is an important strategic step for Avalon,” he said. Meng LiInterim Chief Executive Officer and Chief Operating Officer. “Starting with the launch of KetoAir™, integrating RPM's AI-driven video studio with our consumer health products will strengthen our marketing capabilities, expand our digital reach, and support our long-term value creation strategy. We look forward to leveraging RPM's technology to increase our brand awareness and strengthen our position in the precision wellness market.”
Governance and market perspective
RPM CEO, outlook for the future michael matthews As part of the transaction, he was appointed to Avalon's board of directors.
Additionally, the company notes its separate pending merger with YOOV Group Holdings Limited, and that an S-4 registration statement has already been filed with the Securities and Exchange Commission.
Price action: ALBT stock is trading 2.13% pre-market at $1.37 at last check on Monday.
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