May 07, 2007 10:17 ET

Allegiance Equity Corporation: Private Placement of Up to 2,000,000 Common Shares at $0.25 Per Share

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - Allegiance Equity Corporation (TSX VENTURE:ANQ) The Board of Directors of the Corporation have authorized a private placement of up to 2,000,000 common shares at $0.25 per share.

Purpose of Financing

1. To meet ongoing administrative and corporate expenses.

2. To provide additional funding for assisting emerging corporations primarily in the pharmaceutical and Biotech industries

Relationship between Allegiance Equity Corporation ("Allegiance") and Prime Pharmaceutical Corporation ("Prime")

Allegiance took the initiative in establishing Prime in which it holds a 37.5% equity interest or 6,040,458 common shares of Prime out of 16,284,680 common shares issued and outstanding.


Prime developed Relieva™, a natural, proprietary over-the-counter treatment for psoriasis, eczema and other skin conditions. The active ingredient in Relieva™ is derived from Mahonia Aquifolium and avoids the side effects caused by the use of traditional pharmaceutical treatments.

Innovative Life Sciences Corporation ("Innovative")

Allegiance has made a strategic investment and holds approximately 17.5% equity interest in Innovative, which is developing a family of nutraceutical products with distinct competitive advantages. Management expects Innovative to establish itself as a leader in the treatment of such conditions as glucose (diabetes) and high cholesterol.

Innovative has filed patent applications in Canada and applications for regulatory approvals with Health Canada for its enhanced formulation of CM-X™. These approvals substantiate CM-X™ as the only compound, whether OTC or pharmaceutical, to reduce blood glucose, normalize lipid profiles, reduce cardiovascular inflammation, and act as an anti-oxidant.

Scientific literature, laboratory studies and clinical trials evidence that the ingredients in CM-X™ reduce blood glucose by 28% and cholesterol by 25% within a relatively short period of time.

Alzheimers Disease and Dementia

Allegiance Equity Corporation has filed a patent application for an exciting new compound for improvement of memory function, cognitive function, and mental health.

The new proprietary compound, to be named GG-XT, consists of a synergistic mixture of standardized extracts of ginseng and gingko biloba.

Allegiance and its partners are developing product formulations for tablets, capsules, and functional foods containing GG-XT. Allegiance will file a Product License Applications with Health Canada to support the claims for

- Improving memory

- Cognitive function

- Vitality of life

Dementia is a brain disorder that seriously affects a person's ability to carry out daily activities. The most common form of dementia among older people which initially involves the parts of the brain that control thought, memory and language.

It is estimated that up to 45 million Americans suffer from Alzheimers. The disease usually begins after age 60 and risk goes up with age. About 59% of men and women ages 65 to 74 have Alzheimers disease and nearly half of those aged 85 and older may have the disease.

Product Development

Allegiance intends to acquire interests in worldwide licensing rights outside North America to all of Innovative's technologies and patents. Innovative has filed eight applications with Health Canada to recognize its product claims. In addition, Innovative has filed 3 patent applications on its formulations in various delivery systems. No single prescription product (drug) reduces blood sugar and cholesterol at the same time. CM-X™ does both and more. Drugs may have serious side effects and result in the body becoming insulin resistant. CM-X™ has very limited side effects if any and does not increase insulin resistance.

Interest of Management

It is contemplated, corporations controlled by Marilyn Bloovol and David Solomon, directors and officers of Allegiance may participate in the private placement, directly or indirectly through corporations controlled by them.

Palm America Investment Inc holds 1,873,665 common shares of Allegiance Equity Corporation. Palm America Investment Inc is controlled by David Solomon, Marilyn Bloovol and members of their family.

Allegiance Equity Corporation (ANQ) is the largest shareholder of Prime and holds 6,045,000 shares out of 16,259,580, which is approximately 37.5% of Prime. Allegiance holds 2,050,000 shares of Innovative Life Sciences Corporation which is approximately 17.5% of Innovative. There are presently 4,845,225 common shares of Allegiance issued and outstanding.

The TSX Venture Exchange has not reviewed and does not accept responsibility FOR THE ADEQUACY OR ACCURACY FOR HIS PRESS RELEASE, WHICH HAS BEEN PREPARED BY MANAGEMENT.

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