AlphaRx has signed a binding letter of intent to acquire all of the issued and outstanding shares of UMeLook Holdings Limited. The transaction is expected to close on or before August 15. UMeLook is a digital media startup and its first product is a global online advertising distribution platform with full motion video. The company is releasing a beta site www.umelook.com for public testing in China and the USA simultaneously. While YouTube and many other popular video sites are blocked by the Chinese government UMeLook claims that it is uniquely positioned to offer advertisers the ability to use their existing promotional video assets to access mainland China consumers. Marketers spent $7.4 billion on online marketing in China in 2011 representing 13.5 percent of total media spending. That was up from $5.1 billion or 10.6 percent of the total spent in 2010. More than 60 percent of China's approximately half billion Internet users watch online videos equivalent to about 325 million users in the second half of 2011. As the number of China's Internet users grows so will the online video market. Chinese are spending much of their time online an average three hours a day compared with two hours watching television according to a study conducted last year by Starcom Mediavest Group. The statistic is the same for consumers even in the less developed lower-tier markets that brands are keen to crack. The acquisition of UMeLook is to be completed as a share exchange through the issuance of 70 000 000 common shares of AlphaRx to the shareholders of UMeLook at a deemed price of thirty cents per share in exchange for all of the issued and outstanding shares in the capital of UMeLook. The common shares to be issued pursuant to the acquisition will not be registered for sale under the United States Securities Act of 1933 and will be subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under SEC guidelines.