ValueRich sues China Pharmaceutical, formerly Xian China Qinba Pharmaceutical
June 16 2010 - 4:59PM
Business Wire
ValueRich, Inc. (NYSE Amex: IVA) announced today that the
company has commenced litigation against China Pharmaceuticals, a
publicly traded company under the symbol (OTCBB: CFMI, CFMID) for
breach of contract and other related claims. ValueRich alleges
ownership of 20% of the outstanding shares of China Pharmaceuticals
“pursuant to a May 2009 Consulting Agreement (the `Consulting
Agreement') between ValueRich and Xian Pharmaceuticals, Ltd, the
Chinese-based operating company for China Pharmaceuticals
(`collectively, China Pharmaceuticals').”
Pursuant to the terms of the Consulting Agreement, ValueRich
agreed to provide assistance to China Pharmaceuticals in connection
with their desire to become a publicly traded company in the United
States. In exchange, China Pharmaceuticals agreed to compensate
ValueRich with, among other things, the issuance and transfer of
20% of the shares of the proposed newly formed public company.
In July of 2009, upon the filing of a Form-S1 registration
statement under the guidance of ValueRich, China Pharmaceuticals
was fully positioned to become a publicly traded company,
accomplishing the goals and objectives of the parties set forth in
the Consulting Agreement. However, despite ValueRich’s good faith
performance under the Consulting Agreement, the public offering
contemplated by China Pharmaceuticals was never consummated.
Instead, China Pharmaceuticals terminated ValueRich, cancelled
shares validly issued to ValueRich in the proposed new public
company, and then preceded to go public through another source
while refusing to compensate ValueRich.
ValueRich believes that the attempted “termination” by (OTCBB:
CFMI, CFMID) China Pharmaceuticals is a transparent attempt by the
company to circumvent their obligations to ValueRich in connection
with the Consulting Agreement. In 2008, China Pharmaceuticals, with
the assistance of ValueRich, converted its ownership structure to
become wholly foreign-owned enterprise (“WFOE”) through the
organization of Xian Development Co., Ltd. (“Xian Development”) as
a wholly foreign-owned enterprise (“WFOE”) organized under the laws
of the People’s Republic of China. Xian Development was wholly
owned by China Qinba Pharmaceuticals, Inc. (“China Qinba”), its
holding company in the United States. China Qinba later merged with
a Nevada public corporation known as Allstar Restaurants, which
changed its name to China Pharmaceuticals. Thus, ValueRich alleges
that Xian Pharmaceuticals and China Pharmaceuticals have reaped the
full benefit of the services provided by ValueRich under the
Consulting Agreement to become a publicly traded company in the
United States. ValueRich therefore seeks full compensation for the
services it provided.
About ValueRich, Inc.
ValueRich, Inc. is a diversified company that has media based
properties and has recently acquired assets of The Tesoro Preserve
Development through VR Preserve Development, LLC. A wholly owned
subsidiary of ValueRich, Inc. The Company’s corporate mission is to
utilize its assets to create shareholder value.
This press release contains statements, which may constitute
``forward-looking statements'' within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, as amended by
the Private Securities Litigation Reform Act of 1995. Those
statements include statements regarding the intent, belief or
current expectations of ValueRich, Inc. And members of its
management as well as the assumptions on which such statements are
based. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those contemplated by such forward-looking
statements. The Company undertakes no obligation to update or
revise forward-looking statements to reflect changed assumptions,
the occurrence of unanticipated events or changes to future
operating results.
Valuerich, (AMEX:IVA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Valuerich, (AMEX:IVA)
Historical Stock Chart
From Jul 2023 to Jul 2024