Vancouver, B.C. April 25, 2017 – GLG Life Tech Corporation (TSX: GLG) (“GLG” or the “Company”), a global and agricultural leader in the natural zero-calorie sweetener industry, committed to the sustainable development of high-quality zero-calorie natural sweeteners, is pleased to announce its upcoming Annual General and Special Meeting (the “Meeting”) to be held on May 29, 2017, in Richmond, British Columbia. The Board of Directors appointed an Independent Special Committee to oversee the debt restructuring process, which has led to a two-phase plan to eliminate over 80% of the Company’s outstanding debt and interest. The process the Board utilized in developing its recommendation to shareholders for the restructuring of its China-based debt is described in the Management Proxy Circular. At the Meeting, shareholders will be asked to vote on the first phase of the debt restructuring – a proposed related party transaction (the “Proposed Transaction”) that will significantly reduce the Company’s related party debt. The Proposed Transaction is a mandatory requirement for successful completion of the second phase of the restructuring – eliminating the Company’s debt owed to the Chinese banks and state owned capital management companies. If approved by shareholders, the first phase of the debt restructuring will eliminate approximately $17.8 million in related party debt held by the Company’s Chairman and CEO and family members; in exchange they will receive minority equity ownership in GLG’s primary Chinese subsidiary (the “Subsidiary”). Once that step is complete, the Company expects to finalize the second phase of the debt restructuring. The second phase involves restructuring the debt owed to the China-based lenders; under the proposal, their debt holdings of $64.4 million, along with accrued interest and penalties of $19.6 million, will be eliminated in exchange for a proposed 25% stake in equity ownership in the Subsidiary. Together, this two-phase debt restructuring plan would eliminate approximately $82.2 million in debt principal, have waived approximately $19.6 million in accrued interest and penalties, and save approximately $8 million in annual interest expenses. The Company expects to retain over 50% ownership and management control of the Subsidiary after these two phases of debt restructure are complete.
The Company encourages shareholders and interested investors to read the full transaction description
available in the Company’s Management Proxy Circular, available at the Company’s website
(www.glglifetech.com/investors) and on SEDAR.
Such substantial reduction in debt will greatly improve the Company’s balance sheet and its ability to
generate new sources of working capital to fund sales expansion.
Note: All dollar figures above are in Canadian dollars.
For further information, please contact:
Simon Springett, Investor Relations
Phone: +1 (604) 285-2602 ext. 101
Fax: +1 (604) 285-2606
Email: [email protected]
About GLG Life Tech Corporation
GLG Life Tech Corporation is a global leader in the supply of high-purity zero calorie natural sweeteners including stevia and monk fruit extracts used in food and beverages. GLG’s vertically integrated operations, which incorporate our Fairness to Farmers program and emphasize sustainability throughout, cover each step in the stevia and monk fruit supply chains including non-GMO seed and seedling breeding, natural propagation, growth and harvest, proprietary extraction and refining, marketing and distribution of the finished products. 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 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, 2016. 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. As there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.