Allegiance Equity Corp. (ANQ-TSXV)

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September 16, 2011 Issue

The Most Powerful Name In Corporate News and Information


Allegiance Equity’s CinGx™ Food Additive Product that Reduces Blood Sugar and Improves Memory and Cognitive Function is Offering Hope in the Fight Against Diabetes as well as for Individuals Suffering from Dementia

Interview with:
David S. Solomon
President and CEO

Company Profile:
Allegiance develops products for mass market opportunities having clearly identified product deficiencies and dissatisfied patients and consumers who suffer widespread diseases and conditions including diabetes, Alzheimer's and Dementia and inflammatory skin conditions. Allegiance then obtains patents, regulatory approvals and licenses these technologies for royalties upfront fees and licensing revenues.

Business Development

Allegiance Equity Corp.
299 Rimrock Rd.
Toronto ON Canada M3J 3J9
Phone: 647-271-7208


Interview conducted by: Lynn Fosse, Senior Editor,, Published: September 16, 2011


CEOCFO: Mr. Solomon, Allegiance has a unique business model; what does Allegiance do?

Mr. Solomon: Allegiance develops treatments for widespread conditions where present products are not satisfactory, including pharmaceuticals or over-the-counter products. We then obtain patents, regulatory approvals and license these technologies. Generally they are platform technologies for products that have numerous applications and mass market appeal, whether a food additive or dermatology product with a multitude of benefits. In the case of Relieva™ the benefits include treating itching, irritation, cell proliferation, inflammation bacterial and fungal. Infections and yet has zero toxicity and irritancy.


CEOCFO: How does Allegiance decide where to focus, and how do you find the solutions?

Mr. Solomon: It comes through experience. We only have two technologies because it is not always easy to develop a technology that is effective and meets our standards. Our standards are that we have to find something that is safe, effective, and patentable and something that will meet regulatory approvals. It comes from my ideas and people having shown us opportunities that meet our criteria. We developed a proprietary compound that reduces blood sugar as well as improves memory and cognitive function. They act in a synergistic way, because the blood glucose levels impact brain function. This has attracted the attention of the Dr. William Klein, who has his own institute specializing in Alzheimer`s and Dementia at Northwestern University. He has made some of the major discoveries with regards to Alzheimer’s out of Northwestern University, as well as Dr. Marcus Cantillon psychiatrist. These two have worked with the ten biggest drug companies in the world at one time or another or presently.


CEOCFO: How do the technologies work?

Mr. Solomon: My background is not scientific, so we rely on the resources of leading scientists, some of them having published over 150 papers. In the case of CinGx, the food additive, there have been many trials and laboratory studies, whether animal or human, on how the two different ingredients function and what a specific dosage is to be effective. These ingredients are used everyday, but never used in an effective range of dosages or combinations. Nor have they been combined on an effective range of dosages especially for the applications of foods. Our scientists have researched and found this unique synergy that Alzheimer’s and dementia are seriously impacted or brain function by blood glucose levels and using that we came up with a unique treatment.

CEOCFO: Where are the products today?

Mr. Solomon: The products are in the stage of being licensed. Right now we have the leading food technology ingredient companies called Nealanders International, out of Canada that has become our exclusive distributor for the food additive. We are also in negotiations on our dermatology proprietary extract for inflammatory skin conditions with several different parties for the licensing of that.


CEOCFO: How does your CinGx work with Type III diabetes and Alzheimer’s disease?

Mr. Solomon: With Type III diabetes, the brain produces insulin to regulate blood glucose levels. Because your blood glucose levels are important for brain function, the higher your blood glucose levels the worse your Alzheimer’s and brain function. Just like diabetes may impact various nerves in the body and all the different organs in the body, it also impacts the brain negatively. One of the ingredients is effective in reducing blood glucose; the other up to a maximum dose improves brain function and then after that becomes redundant. Therefore, we have taken the optimum dose of that ingredient and combined it with something that reduces blood sugar to improve brain function. There are all kinds of other benefits, because if you are reducing your blood sugar, it helps with diabetes and the overall body. This other ingredient improves memory and cognitive functions, vitality of life, energy.


CEOCFO: What do you see in the next six months to a year, how will these products develop?

Mr. Solomon: What I see in the next six months is our distributor of the food ingredient, if they fulfill their projections, we will be an extremely profitable company. Their projections for the first year of CinGx, would result in gross revenues of several million dollars growing exponentially thereafter, as a result of line extensions, new categories, and new customers. That is a net estimate because we have no expenses, and our distributors handle everything. It is just a straight payment for consulting services and our royalties.


CEOCFO: Who will be producing the ingredients of your products?

Mr. Solomon: These ingredients are made to pharmaceutical grades and they come from different parts of the world, so they source them. Our distributors blend them and resell them. There is a lot of quality control assurance along the way, because the level of the active ingredients has to be tested at the time they buy the ingredients, after they blend them and after they ship them out. They handle everything for us. Nealanders has over two thousand clients in every corner of the food industry, including some of the biggest multinationals in the world as well as twenty-five sales people, and their facilities include the laboratories and kitchens. They do not go to clients and say use this ingredient in your products. They walk in with the finished products and all the specifications, so everything that a company would have to do to develop a manufacturing process is provided.

CEOCFO: Is Allegiance considering other products?

Mr. Solomon: I have been talking to the Spanish multinational that sells to 6000 top pharmacists around the world about buying the extract for inclusion in his Psorborine products. I am also talking to probably one of the five biggest companies in the world that is also testing the Psorborine or Relieva™ extract. I have just made a deal with a group in Ottawa that wants to use this product in conjunction with their proprietary process that greatly improves the penetration and the bioavailability of the active ingredient on the patient. So they want to do that with our extract and that process is actually starting today. We also have a company in the United States headed up by the former president of Johnson & Johnson, that is carrying out their own private clinical trial with the latest version of our psoriasis product. Therefore, we have numerous leads on the go; some of them the probability may be from a very low probability of getting a license agreement, to maybe better than a 50% chance.


CEOCFO: So Allegiance has a lot going on?

Mr. Solomon: There is a lot of activity, but it is going on outside our offices by third parties. So it is not always as active as I would like it to be.


CEOCFO: What is the financial picture for Allegiance Equity today?
Mr. Solomon: Financially we have enough money to meet our day to day expenses, but not to do a lot of other things. Quite recently, brokers have become interested and some of the leading IR firms have agreed to take it on actually at their own expense, because they believe the potential is very exceptional. The CinGx opportunity based on the one agreement, once that starts, within 3 to 6 months our net revenues basically are one and a half times our market cap, the reward ratio to risk is greater than I have ever seen in any other company.


CEOCFO: In closing, what should potential investors know when looking at Allegiance Equity?

Mr. Solomon: Potential investors should read the press releases and read about the companies that are our partners, because that is who you are betting on, as well as us. If our one licensee on CinGx meets their projections, the shares will be worth up to 50 times more within 3 years. Therefore, you have that type of upside, but it is not exactly a utility stock, and there is always some risk in everything. Allegiance offers upside potential, with a very simple model; there are no real regulatory hurdles to go over. It is mass market opportunity, and there are companies in the same space with market cap of $250 million that I would not trade either one of my technologies for their company. Other technologies that revolutionized a major industry are Danone’s Activia, where they introduced their probiotic yogurts in 2006 and in 2010 they had increased revenues by several billion annually worldwide. Red Bull was introduced in 1989, creating an entirely new category of beverage. As of 2010, their sales had exceeded $4 billion. CinGx and Relieva are similar opportunities.


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Right now we have the leading food technology ingredient companies called Nealanders International, out of Canada that has become our exclusive distributor for the food additive. We are also in negotiations on our dermatology proprietary extract for inflammatory skin conditions with several different parties for the licensing of that. - David S. Solomon does not purchase or make
recommendation on stocks based on the interviews published.