Avalon GloboCare Corp. (ALBT) announced Monday it's acquiring RPM Interactive, Inc., a generative AI software company that specializes in automated video content creation. The move is part strategy, part balance sheet fix, and potentially the marketing engine Avalon needs as it prepares to launch consumer products.
The deal brings RPM's "Catch-Up" platform into Avalon's portfolio, an AI-powered system that churns out short-form videos automatically. Think clips, AI-generated narration, digital avatars, and instant publishing across major platforms. For a company trying to make noise in the wellness space, that's valuable infrastructure.
How The Deal Works
RPM merged into Avalon Quantum AI, LLC, a newly created subsidiary wholly owned by Avalon. In exchange, Avalon issued 19,500 Series E non-voting convertible preferred shares worth $19.5 million total. Those shares can convert into common stock at $1.50 per share, but not until after May 12, 2026, and only with shareholder approval and ownership limit restrictions.
There's a practical side benefit here too. The transaction is expected to push Avalon's stockholders' equity above the $2.5 million threshold required to maintain its Nasdaq listing. That's not the headline reason for doing a deal, but it certainly doesn't hurt.
The Marketing Play
Avalon plans to deploy RPM's AI video platform to support the rollout of KetoAir, its FDA-registered breathalyzer designed to help people track wellness and metabolic health. The company expects to commercialize the platform early next year, just in time to support the product launch.
"The acquisition of RPM is an important strategic step for Avalon," said Meng Li, interim CEO and COO. "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."
The platform sources video clips, generates AI narration and avatars, and distributes branded content across multiple channels. For a small company trying to compete in consumer wellness, having that kind of content production capability in-house could mean faster iterations and lower marketing costs.
What Comes Next
As part of the acquisition, RPM Chief Executive Officer Michael Mathews has been appointed to Avalon's board of directors. That's fairly standard in deals like this, especially when the acquired company's technology becomes central to the buyer's strategy.
Worth noting: Avalon has a separate pending merger with YOOV Group Holdings Limited already in the works, with an S-4 registration statement filed with the Securities and Exchange Commission. So there's more corporate activity on the horizon.
Price Action: ALBT shares traded 2.13% higher at $1.37 in premarket trading Monday.