Asia Bio-Chem Group Corp. Announces Closing of Qualifying Transaction



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    VANCOUVER, June 25 /CNW/ - Asia Bio-Chem Group Corp. (the "Company"),
formerly Parran Capital Inc. ("Parran") is pleased to announce that effective
June 19, 2008 it completed its previously announced qualifying transaction
(the "Qualifying Transaction") with Asia Bio-Chem Group Company Ltd. ("Asia
Bio"). On June 25, 2008 the TSX Venture Exchange (the "Exchange") approved the
Qualifying Transaction and issued its final bulletin. The Company will be
listed as a Tier 1 Industrial Issuer and its common shares are expected to
resume trading on the Exchange on June 26, 2008. Prior to the completion of
the Qualifying Transaction, the Company consolidated its outstanding shares on
a 7.5 to 1 basis, declared and issued a stock dividend to its shareholders and
changed its name. In connection with the Qualifying Transaction, Asia Bio
completed a brokered private placement (the "Private Placement") of common
shares of Asia Bio for gross proceeds of $30 million.
    Asia Bio completed the Private Placement, raising gross proceeds of
$30,000,000 through the sale of 25,000,000 shares of Asia Bio (the "Shares")
at a price of $1.20 per Share. Research Capital Corporation, CIBC World
Markets Inc., Canaccord Capital Corporation and Clarus Securities Inc. acted
as agents (the "Agents") in connection with the Private Placement.
    Under the Qualifying Transaction, the Company entered into an agreement
to merge dated April 11, 2008 as amended June 13, 2008 (the "Merger
Agreement") with Asia Bio and Parran's wholly owned subsidiary in the British
Virgin Islands ("Parran BVI"). The Merger Agreement provided that Asia Bio
merge with Parran BVI, with Asia Bio as the surviving entity. Under the Merger
Agreement, each issued and outstanding common share, warrant and option of
Asia Bio was exchanged for common shares, warrants and options of Parran on a
one for one basis.
    Pursuant to the Merger Agreement, Parran consolidated its outstanding
shares on a 7.5 to 1 basis (the "Consolidation"), prior to the merger. Prior
to the Consolidation, Parran had 3,750,000 shares issued and outstanding and
upon completion of the Consolidation, Parran had 500,000 shares issued and
outstanding. The Consolidation was approved by Parran's shareholders on
April 18, 2008 and by the Exchange in conjunction with the approval of the
Qualifying Transaction. In addition, prior to the merger, a stock dividend was
declared on Parran's common shares, pursuant to which a total of 736,625
common shares (the "Dividend") were issued pro rata to the shareholders of
Parran as of the record date of June 19, 2008, immediately after the
Consolidation, representing approximately 1.47325 common shares for each
issued and outstanding common share of Parran. Finally, Parran changed its
name from "Parran Capital Inc." to "Asia Bio-Chem Group Corp."
    As a result of the Consolidation, Dividend and the Qualifying
Transaction, the Company now has an aggregate of 76,777,025 issued and
outstanding common shares. The Company's common shares are expected to resume
trading on the Exchange on June 26, 2008.
    Immediately following closing of the Qualifying Transaction, the Company
granted to certain non-management directors and employees an aggregate of
4,754,966 options to purchase common shares of the Company at an exercise
price of $1.20 per share for a period of five years. Following the grant of
the forgoing options, the Company had options to acquire 9,093,817 common
shares outstanding and an additional 6,261,588 common shares available for
issuance under the Company's 2008 stock option incentive plan.
    Finally, in connection with the Qualifying Transaction, the Company's
current auditor Deloitte & Touche LLP resigned and the Company has engaged
Manning Elliot Chartered Accountants, Asia Bio's auditor.

    The Company, through its wholly-owned subsidiary in the Peoples Republic
of China ("PRC") is in the business of manufacturing cornstarch and related
products. From its plant in Liaoning Province, the Company produces
approximately 270,000 tonnes of cornstarch, corn germ, gluten and fiber per
year for sale into the domestic market in the PRC. The proceeds of the Private
Placement will be applied towards implementation of the Company's business
plan to expand its production capacity either by way of acquisition or
construction of new capacity.

    This news release contains certain statements that may be deemed "forward
looking statements". Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the words
"expects,", "plans", "anticipates", "believes", "intends", "estimates",
"projects", "potential" and similar expressions, or that events or conditions
"will", "would", "may", "could" or "should" occur. Although the Company
believes the expectations expressed in such forward looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in forward
looking statements. Forward looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the statements
are made. The Company undertakes no obligation to update these forward looking
statements, except as required by law, in the event that management's beliefs,
estimates or opinions, or other factors, should change.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS
    RELEASE.





For further information:

For further information: For Corporate Information: Asia Bio-Chem Group
Corp., Suite 2105 - 130 Adelaide Street West, Toronto, Ontario, M5H 3P5,
Attention: Robert Wilson, Tel: (416) 603-7500

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Asia Bio-Chem Group Corp.

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