Allegiance Completes Private Placement Of 229,166 Common At $0.48 Per Share

TORONTO, Oct. 3, 2011 /CNW/ - Allegiance Equity Corporation (TSXV: ANQ) The TSX has given final approval to the purchase by Palm American Investment Inc. of 229,166 common shares of Allegiance Equity Corporation (TSXV:ANQ) at $0.48 per share that was announced by the Corporation on September 26th 2011. The private placement shares are restricted and cannot be sold or transferred until February 15th 2012.

Purpose of Financing

The funds will be used for general corporate purposes and the maintenance of its patents. Allegiance is very fortunate that its partners have absorbed much of the expenses for their research and ongoing trials.

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 royalty's upfront fees and royalties. Allegiance's strategy utilizes leading-edge scientific technology to create valuable, proprietary and effective natural treatments, recognized as safe and effective by North American regulatory authorities, at a fraction of the cost and time it takes to develop a prescription drug. Allegiance then obtains patents and regulatory approvals.

Proprietary Technologies and Recent Developments

Allegiance and its partners developed and patented CinGx™ and Relieva™ providing millions of dollars in licensing opportunities. Both products are ready for market and the company is in engaged in negotiations with major potential licensees world-wide.

Nealanders International - a world-class supplier of ingredients and additives in the food industry, the exclusive distributor of CinGx™ in North America; will introduce CinGx™ at Supply Side West to be held in Las Vegas October 10th - 14th. Supply Side West, is the World's Largest Event for Healthy and Innovative Food Ingredients

ABOUT CING-X

Allegiance Equity Corporation recently developed CinGx™ , a unique product to treat and prevent Type 3 Diabetes resulting from the impact of Diabetes on brain function.

CinGx™ is a formula combining two extracts which act synergistically to control glucose metabolism, improve cognitive function and simultaneously minimize the risk of developing and treating CVD, diabetes, dementia and Alzheimer's.

CinGx™ is a proprietary additive that enhances the value of any food, beverage or nutritional supplement and can be combined with most other ingredients. Products with CinGx™ to date include chocolate snacks, yogurt and beverages.

Recent research discovered that the brain produces insulin and depriving brain cells of insulin damages the cells, leading to memory loss, dementia, and Alzheimer's disease. The impact of high blood glucose levels results in Type 3 Diabetes, also known as "brain diabetes." CinGx™ will greatly benefit the rapidly increasing number of North Americans diagnosed with diabetes, particularly Type 3 Diabetes.

"Diabetes is one of the clear metabolic risk factors for Alzheimer's Disease (AD), perhaps through insulin signaling or secondary cardiovascular effects," says Dr. Cantillon, American Board Certified Neurologist and Psychiatrist. "After rosiglitazone and other failures, there are no metabolic treatments in sight for AD that are effective and/or do not have serious side effects. Therefore, insulin receptor protein tyrosine kinase treatment for Type 3 Diabetes might represent a new opportunity for long term safe prevention of Alzheimer's.

"We are extremely fortunate and grateful to have Nealanders as a partner, you couldn't have asked for a better fit for Allegiance. They are poised to market CinGx™ to their clients for placement in a variety of foods and beverages", stated David Solomon, President of Allegiance.

Nealanders has completed regulatory documentation for compliance with Health Canada and the FDA requirements to facilitate marketing CinGx™ to its clients. They have formulated foods and beverages in several categories containing CinGx™ for presentation where Nealanders has established relationships and rapport with key Marketing and Sales, as well as Product Development personnel.

"I am very excited about moving forward with this revolutionary new additive, says Steve Owen, VP Sourcing, Product Development GM - Ontario. With the added value CinGx™ brings to our customers' products and the important health benefits for consumers".

ABOUT NEALANDERS

Nealanders is recognized as the leader in the manufacturing and distribution of food ingredients, specializing in antioxidants, release agents, dough conditioners and enrichment blends. Proudly Canadian, Nealanders' Head Office is located in Mississauga, Ontario, with facilities strategically located across North America providing their customers with coast-to-coast coverage in both distribution and technical sales. On the leading edge of emerging trends and a strategic focus on wellness. Nealanders has extensive laboratory capabilities for product development and full technical and regulatory support. Nealanders embraces a customer focused mindset and value creation for their customers.

Interest of Management Notice of Intention to Distribute

Palm American Investment Inc. will continue to be the controlling shareholder of Allegiance holding 2,096,997 common shares. Palm American Investment Inc is controlled by David Solomon, Marilyn Bloovol and members of their family

Palm American Investment Inc. filed a Notice of Intention to sell up to 500,000 common shares on September 20th, 2011 by way of private sale or on the market from time to time.

There are presently 7,291,087 common shares of Allegiance issued and outstanding.

Additional information relevant to the Company's activities, including the Company's press releases can found on SEDAR at www.sedar.com

The TSX Venture Exchange has not reviewed and does not accept responsibility FOR THE ADEQUACY OR ACCURACY FOR THIS PRESS RELEASE, WHICH HAS BEEN PREPARED BY MANAGEMENT.

For further information:

Allegiance Equity Corporation David Solomon President (416) 630 1221 Email dsolomon79@gmail.com