LAS VEGAS--(BUSINESS WIRE)--China Health Holding (OTCBB:CHHH), a development-stage company with the goal of becoming a leading developer, manufacturer, marketer and distributor in the global medical and pharmaceutical industry in China and worldwide, announced today the Company’s Board on October 12, 2006, has approved to issue 10,000,000 shares of the Company’s common stock to Julianna Lu, the Company’s Founder and Chief Executive Officer, as consideration for the forgiveness of loans in the aggregate amount of $300,000 previously advanced to the Company by Ms. Lu. As additional consideration, the Company agreed to issue to Ms. Lu five year warrants to purchase 10,000,000 shares of the Company’s common stock, exercisable at a price of $0.10 and ten year warrants to purchase 10,000,000 shares of the Company’s common stock exercisable at a price of $0.20. The warrants have piggy back registration rights with respect to the shares of common stock issuable upon exercise of the warrants. The Company claims an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Act”) with respect to the foregoing, pursuant to Section 4(2) of the Act and/or Regulation D promulgated thereunder. In 10 years, Julianna Lu’s further warrants exercise will bring the Company for a total 3,800,000 USD cash investment.
