On March 13, 2006 Central American Equities Corp. (OTC BB: CEAQ) and its wholly owned subsidiary, Ostar Acquisition Corp., entered into an Agreement and Plan of Merger with Ostar Pharmaceutical, Inc. Ostar Pharmaceutical owns 60% of Hebei Aoxing Pharmaceutical Group (“Aoxing”), which is involved in the business of manufacturing and distributing analgesic drugs in the People’s Republic of China. The Agreement provides that at a closing, which is expected to occur later in March, Ostar Pharmaceutical will be merged into Ostar Acquisition Corp., and become a wholly owned subsidiary of Central American Equities Corp. American Union Securities has served as Special Advisor to Aoxing in connection with the merger.
