VANCOUVER, British Columbia, Sept. 5, 2013 (GLOBE NEWSWIRE) — GLG Life Tech Corporation (TSX:GLG) (“GLG” or the “Company”) a global leader in the agricultural and commercial development of high quality stevia products announces a new distribution agreement for Canada and the sale of its interest in its consumer products joint venture in China.
Distributions Agreement For Canada
GLG has signed a distribution agreement with Quadra Ingredients Ltd. (“Quadra”) for the distribution and marketing of GLG’s stevia extract products throughout the Canadian market. Shaun Richmond, Vice President of International Sales for GLG, stated “Quadra’s national marketing structure and seamless supplier relationships make Quadra a market leader in ingredient distribution services in Canada. With over 30 years of experience and preferredsupplier status with many of Canada’s most successful and respected food, beverage and pharmaceutical companies, they are the perfect partner to represent our products.” Christine Infilise, Business Development Manager at Quadra, said; “With Health Canada’s approval of stevia in late 2012, and the growth we have already seen in the US and EU markets, we believe that representing a world leader in supplying zero-calorie sweeteners in Canada will complement our product offering to our customers. We see stevia as an important strategic product as more and more attention is paid to reducing sugar consumption.”
SALE OF INTEREST IN CONSUMER PRODUCTS JOINT VENTURE IN CHINA
GLG also wishes to announce that it has transferred its 80% interest in Dr. Zhang’s All Natural and Zero Calorie Beverage and Foods Company (the “Joint Venture”) to the minority 20% interest holder, China Agriculture and Healthy Foods Company Limited. Under the previously disclosed strategic cooperation agreement between GLG and the COFCO Nutrition and Health Research Institute Co Ltd., GLG is working with COFCO to develop stevia sweetened beverages and foods for the China market and COFCO will use their own marketing and distributing channels for the co-developed products, and thus continued participation in the Joint Venture was no longer necessary. Commented Dr. Luke Zhang, CEO of GLG: “We continue to develop our relationship with COFCO, and will be their supplier as they introduce stevia sweetened products. As the largest food company in China, their distribution channels reach every consumer in every market. We can concentrate on running our business.” As part of the transaction and to settle amounts owing by the Joint Venture, GLG will issue a three year, zero interest unsecured convertible note with principal amount of $4,295,532.65 that is convertible into the common shares of GLG at a price of $1.80 per share. The Toronto Stock Exchange has granted conditional approval for listing of up to 2,386,407 common shares upon conversion, subject to certain conditions.
About GLG Life Tech Corporations
GLG Life Tech Corporation is a global leader in the supply of high-purity stevia extracts, an all-natural zero-calorie sweetener used in food and beverages. GLG’s vertically integrated operations cover each step in the stevia supply chain including Non-GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest, proprietary extraction and refining, marketing and distribution of the finished product. GLG has similarly positioned itself, through parallel vertically integrated Luo Han Guo operations, to be a leader in the supply of high-purity Luo Han Guo extracts. Additionally, to further meet the varied needs of the food and beverage industry, GLG has launched its Naturals+ product line, enabling it to supply a host of complementary ingredients reliably sourced through its R8 supplier network in China. For further information, please visit www.glglifetech.com
Forward-looking statements: This press release may contain certain information that may constitute “forward-looking statements” and “forward looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
While the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company’s future performance and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors include amongst others the effects of general economic conditions, consumer demand for our products and new orders from our customers and distributors, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of preparing forward-looking statements. Specific reference is made to the risks set forth under the heading “Risk Factors” in the Company’s Annual Information Form for the financial year ended December 31, 2015. In light of these factors, the forwardlooking events discussed in this press release might not occur.
Further, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.