Avalon GloboCare Corp. (NASDAQ:ALBT) announced Monday that it has acquired RPM Interactive, Inc., a generative artificial intelligence software company, through an all-stock transaction.
The acquisition aims to expand Avalon’s digital marketing capabilities and strengthen its balance sheet.
The deal includes RPM’s automated short-form video technology and is expected to raise Avalon’s stockholders’ equity above the $2.5 million minimum required for the Nasdaq listing.
Transaction Structure
RPM merged into Avalon Quantum AI, LLC, a newly formed wholly owned subsidiary. Avalon issued 19,500 Series E non-voting convertible preferred shares, valuing the deal at $19.5 million.
These shares may be converted into common stock at $1.50 per share after May 12, 2026, subject to shareholder approval and applicable ownership limits.
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RPM’s “Catch-Up” SaaS platform automates the creation and distribution of short-form videos, enabling Avalon to quickly produce branded content, boost engagement, and advertise efficiently.
It sources clips, generates AI narration and avatars, and publishes content across major platforms. Avalon expects to commercialize the platform early next year.
Strategic Rationale
Avalon plans to use the AI platform to support marketing for KetoAir, its FDA-registered breathalyzer designed to help consumers track their wellness and metabolic health.
“The acquisition of RPM is an important strategic step for Avalon,” said Meng Li, interim chief executive officer and chief operating officer. “Integrating RPM’s AI-driven video studio with our consumer health products, starting with the launch of KetoAir™, will enhance our marketing capabilities, broaden our digital reach, and support our long-term value creation strategy. We look forward to leveraging RPM’s technology to elevate our brand visibility and strengthen our position in the precision wellness market.”
Governance And Market Angle
Looking ahead, RPM Chief Executive Officer Michael Mathews has been appointed to Avalon’s board of directors as part of the deal.
Additionally, the company noted a separate, pending merger with YOOV Group Holdings Limited, with an S-4 registration statement already on file with the Securities and Exchange Commission.
Price Action: ALBT shares are trading 2.13% higher at $1.37 premarket at the last check on Monday.
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