EXCLUSIVE: Avalon GloboCare Buys AI Video Firm In $19.5 Million Deal

Core Viewpoint - Avalon GloboCare Corp. has acquired RPM Interactive, Inc. to enhance its digital marketing capabilities and strengthen its balance sheet through an all-stock transaction valued at $19.5 million [1][2]. Transaction Structure - RPM merged into Avalon Quantum AI, LLC, a newly formed wholly owned subsidiary, with Avalon issuing 19,500 Series E non-voting convertible preferred shares [2]. - The preferred shares can be converted into common stock at $1.50 per share after May 12, 2026, pending shareholder approval [2]. Technology and Product Integration - RPM's "Catch-Up" SaaS platform automates the creation and distribution of short-form videos, allowing Avalon to produce branded content efficiently [3]. - The platform sources clips, generates AI narration and avatars, and publishes content across major platforms, with commercialization expected early next year [3]. Strategic Rationale - Avalon intends to utilize the AI platform to support marketing efforts for KetoAir, an FDA-registered breathalyzer aimed at helping consumers track wellness and metabolic health [4]. Leadership and Governance - RPM's CEO, Michael Mathews, has been appointed to Avalon's board of directors as part of the acquisition deal [6]. - Avalon is also pursuing a separate merger with YOOV Group Holdings Limited, with an S-4 registration statement filed with the SEC [6]. Market Reaction - Following the announcement, ALBT shares were trading 13.97% lower at $1.17 in premarket trading [6].