ALLEGIANCE EQUITY CORPORATION
TSX VENTURE : ANQ

October 05, 2010 15:08 ET

Allegiance Equity Corporation: Update

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) - Allegiance Equity Corporation (TSX VENTURE:ANQ) - Allegiance previously announced a proposed private placement of up to 1,500,000 shares on September 3 rd ,2010 at $0.25 has now been withdrawn and instead will proceed with a Private Placement of up to 400.000 common shares at $0.15 per share. 

ALLEGIANCE EQUITY CORPORATION

Allegiance and its partners developed and patented CinGx™ and Relieva™ providing millions of dollars in licensing opportunities. Both products are ready for market and the company is in engaged in negotiations with major potential licensees world-wide.

CinGx™ and Alzheimer's, dementia and diabetes

Current prescription therapies for the treatment of Alzheimer's and dementia are not effective. They do not prevent the progression nor help recover brain function caused by these conditions. There are also no prescriptions for the prevention of diabetes, or a cure for the damage caused by the disease. We need better therapies for these devastating disorders.

CinGx safely and effectively controls glucose metabolism, improves brain function and a healthy cognitive system. It contains two concentrated and purified natural extracts that act synergistically to control glucose metabolism, improve brain function, and minimize the risk of developing dementia, Alzheimer's and diabetes. The International Patent Examiner approved all claims for improving mental health, memory, and cognitive function in diabetics.

CinGx™ a Mass Market Opportunity

There are applications for CinGxin a multitude of food products including beverages, diet and nutritional foods, meal replacement bars and shakes, vitamin products, and diabetic products.

Allegiance has an interim agreement to license CinGx to a U.S. based gourmet chocolate manufacturer. The new products will be introduced in the U.S. later this month.

RELIEVA™ for Psoriasis, Eczema and Atopic Dermatitis

Global Psoriasis Drugs Market to Exceed $7.3 Billion Dollars by 2015, according to new reports by "Global Industry analysts Inc." with no satisfactory treatment in sight.

Prime Pharmaceutical Corporation (Prime) a subsidiary of Allegiance invented a patented extraction process which increases the concentration of the beneficial alkaloids from Mahonia Aquifolium. This ancient Indian Herbal remedy now 75 times more potent, is Prime Pharmaceutical's proprietary extract "Psorberine"™.

Relieva™ is the company's first product made with Psorberine™ an anti-inflammatory, antibacterial product for the treatment of psoriasis and atopic dermatitis. Relieva™ provides immediate relief for itching, irritation and inflammation associated with almost all problem skin conditions with ZERO toxicity and Irritation.

There are currently patents in 21 countries for Relieva including the U.S. the EEC, China, and Russia.

Enhanced Formulation of Relieva captures attention of DSE Health

DSE Healthcare Solutions L.L.C., Edison, New Jersey will carryout at its own expense a clinical trial with a new enhanced formulation for Relieva.

Production of the new formulation and placebo for the clinical trial are underway and the trial is expected to commence within the next 4 weeks. The enhanced Relieva had surprisingly effective results with several cases of severe psoriasis and the purpose of the trial is to verify these results.

DSE Healthcare Solutions is successful in the marketing of health care, medical and consumer products, to food, drug and mass merchandiser customers. DSE Healthcare Solutions was founded by very experienced former managers of one of the world`s largest pharmaceutical and health care companies. Robert C. Stites, the CEO and one of the founders of DSE, was previously President and Chief Operating Officer of Johnson & Johnson Products, Inc.

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.

Purpose of Financing

Allegiance is expecting to complete licensing agreements within the next few months for Relieva and CinGx to generate revenues. In the interim Allegiance requires operating capital to continue day to day operations. Funding will be used for the following purposes.

1. To meet ongoing administrative and corporate expenses.

2. To provide funding to support Marketing and Licensing programs for CinGx and Relieva.

Interest of Management – Notice of Intention to Distribute

Palm American Investment Inc. holds 1,428,550 common shares of Allegiance Equity Corporation and has filed a Notice of Intention to sell up to 1,000,000 common shares on October 1st, 2010 by way of private sale or on the market from time to time. Palm American Investment Inc is controlled by David Solomon, Marilyn Bloovol and members of their family. It is contemplated, corporations controlled by Marilyn Bloovol and David Solomon, directors and officers of Allegiance will participate in the private placement, directly or indirectly through corporations controlled by them.

Additional information relevant to the Company's activities, including the Company's press releases can found on SEDAR at www.sedar.com.

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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