Vancouver, B.C. September 25, 2018 – GLG Life Tech Corporation (TSX: GLG) (“GLG” or the “Company”), a global leader in the agricultural and commercial development of high-quality zerocalorie natural sweeteners, is pleased to announce today that its primary Chinese debtholder, China Cinda Assets Management Corporation Anhui Branch (“Cinda”), has completed its buyout of the Company’s core bank debt.
Cinda now holds 100% of the Company’s core bank debt, held at GLG’s China subsidiary Anhui Runhai Biotechnology Joint Stock Company, Ltd. (“Runhai”). Consolidation of the Company’s China core bank debt under one lender was a major milestone prior to conversion of that debt into an equity stake in Runhai.
The final piece of the core bank debt buyout comprised nearly RMB 80 million, or nearly CAD $15 million, in debt principal that the Company previously owed to Bank of Communications. With Cinda’s acquisition of this debt holding from Bank of Communications, Cinda’s total principal debt holding now increases to approximately RMB 322 million or CAD $61 million. With Cinda’s core debt acquisition complete, GLG looks forward to continuing its work with Cinda on completing the restructuring project and having Cinda becoming a shareholder in Runhai.
Dr. Luke Zhang, CEO and Chairman of GLG, commented: “We are very pleased to see Cinda Anhui complete its buyout of the last remaining core Chinese debt holder in anticipation of realizing our Phase II Debt Restructuring goals. With Cinda’s core debt acquisition complete, GLG looks forward to continuing its work with Cinda on bringing the restructuring project to completion and having Cinda become a shareholder in our Runhai joint stock company. Once the Phase II Debt Restructuring Project is complete our consolidated balance sheet will be greatly improved with the conversion of over $60 million debt into equity in Runhai. We also will be bringing on a new shareholder that shares our vision for growth in our continued pursuit of becoming a leading natural zero calorie sweetener producer globally.”
For further information, please contact:
Brian Meadows, President and CFO
Phone: +1 (604) 285-2602 ext. 105 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, beverages, and dietary supplements. 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 and supplement industries, GLG’s Naturals+ product line enables it to supply a host of complementary ingredients reliably sourced through its supplier network in China. For further information, please visit www.glglifetech.com.
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 published March 31, 2018. In light of these factors, the forward-looking 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.