SOURCE: Central American Equities Corp.

March 17, 2006 16:00 ET

CEAQ and Ostar Pharmaceutical Merger

NEW YORK, NY -- (MARKET WIRE) -- March 17, 2006 -- On March 13, 2006 Central American Equities Corp. (OTC BB: CEAQ) and its wholly owned subsidiary, Ostar Acquisition Corp., entered into an Agreement and Plan of Merger with Ostar Pharmaceutical, Inc. Ostar Pharmaceutical owns 60% of Hebei Aoxing Pharmaceutical Group ("Aoxing"), which is involved in the business of manufacturing and distributing analgesic drugs in the People's Republic of China. The Agreement provides that at a closing, which is expected to occur later in March, Ostar Pharmaceutical will be merged into Ostar Acquisition Corp., and become a wholly owned subsidiary of Central American Equities Corp. American Union Securities has served as Special Advisor to Aoxing in connection with the merger.

Hebei Aoxing Pharmaceutical Group is a corporation organized under the laws of the People's Republic of China that has developed a patented manufacturing process for a variety of generic analgesic drugs including oxycodone, pholcodine, naloxone, and tilidine. Aoxing is one of only a handful of companies in China to be granted the license to manufacture these drugs and is working closely with the Chinese government to assure their availability throughout China.

Michael N. Caggiano, Chairman and CEO of CEAQ, stated, "We look forward to working with American Union Securities and Aoxing in completing this transaction in a timely manner. In visiting the US this week, Aoxing has shown a tremendous commitment to the success of this transaction."

John Leo, CEO of American Union Securities, stated, "On February 13, 2006, CEAQ and Ostar Pharmaceutical signed a Letter of Intent, and thirty days later they have entered into a merger agreement, obviously our client is very pleased with the progress of this transaction. We look forward to closing the transaction by the end of the month and working with Ostar in the future." American Union Securities has been retained by Ostar to advise the company on this transaction and to assist management with the execution of its business plan over the next twelve months. American Union Securities is a full service investment-banking firm headquartered in New York at 100 Wall Street. For additional information, please visit the firm's website http://www.ausbanking.com/.

Contact Information

  • Contact:
    For additional information:
    Michael N. Caggiano
    +011 (506) 282-4160
    888-388-2582