GLG Life Tech Corporation Announces Update on Delay in Filing Year-End
Financial Statements and US$6.5 Million Financing
VANCOUVER, British Columbia, April 30, 2012 (GLOBE NEWSWIRE) -- GLG Life Tech
Corporation (Nasdaq:GLGL) (TSX:GLG) ("GLG" or the "Company") announced today
that it continues to work towards finalizing its annual financial statements,
its management discussion and analysis relating to its annual financial
statements, its Annual Information Form (and related Form 40-F in the United
States) and the CEO and CFO certifications (collectively, the "Required
Documents") for the period ended December 31, 2011.
The Company continues to work to obtain further audit evidence from third
parties as required by its auditors. The Company's auditors have required
that the Company's Audit Committee engage a third-party audit firm in order to
assist with third party audit evidence in order to properly conclude on
certain third party transactions.The Company's Audit Committee has engaged
KPMG LLP in order to assist in the process.The Company's auditors have
communicated to the Company that it has not uncovered any wrongdoing by the
The Company's management, together with its Audit Committee, will continue to
cooperate with its auditorsand KPMG LLP to provide any remaining information
as soon as possible.Although the Company cannot provide a definitive date of
completion of the audit, it anticipates completion of the audit process
outlined above by the end of May, 2012.
The Company has been granted a management cease trade order ("MCTO") from
applicable Canadian securities regulatory authorities.However, the applicable
Canadian securities regulatory authorities may issue a general cease trade
order against the Company for failure to file the Required Documents.
There are no insolvency proceedings that GLG is subject to and there is no
other material information concerning the affairs of the Company that has not
been generally disclosed.
The Company has also arranged an interim unsecured credit facility from its
Chairman and Chief Executive Officer, Dr. Luke Zhang, in an amount of up to
US$6.5 million to be advanced to the Company and its subsidiaries in
China.The facility will be for a three-year term and will bear interest at a
rate ranging from 13% to 14.5% per annum.
The Company intends to use the proceeds from the facility for general working
In connection with the Facility, the Company intends to also grant up to an
aggregate of 650,000 warrants to purchase common shares of the Company at an
exercise price of $3.50 per common share for a period of three years.The
grant of the warrants is subject to the approval of the Toronto Stock
The Company also announces, further to its update provided on March 30, 2012,
that the Company has signed sales contracts relating to its stevia products
approaching USD$7 million in the past few weeks and continues to focus on
making progress on improving its stevia sales.
About GLG Life Tech Corporation
GLG Life Tech Corporation is the global leader in the supply of high purity
stevia extracts, an all-natural, zero-calorie sweetener used in food and
beverages. The Company'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 finished product. Through its consumer
food products subsidiary, AN0C, the company formulates and markets a wide
range of stevia sweetened beverages and foods products within the Chinese
marketplace – a true seed to shelf model.For further information, please
The GLG Life Tech Corporation logo is available at
AN0C focuses on the sale and distribution of all-natural zero-calorie food and
beverage products in China that are sweetened with stevia provided by GLG Life
Tech Corporation. GLG is a global leader in the supply of high quality stevia
extracts and holds an 80% controlling stake in AN0C with China and Healthy
Foods Company Limited (CAHFC) holding 20%. Dr. Luke Zhang, Chairman and CEO of
AN0C, is supported by an experienced team of senior executives recruited from
the beverage industry in China.For further information, please visit
Forward-looking statements: This press release contains certain information
that may constitute "forward-looking statements" and "forward looking
information" (collectively, "forward-looking statements") within the meaning
of applicable securities laws. Such forward-looking statements include,
without limitation, statements evaluating the market, potential demand for
stevia and general economic conditions and discussing future-oriented costs
and expenditures. 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 which 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, 2010. 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.
Financial outlook information contained in this press release about
prospective results of operations, capital expenditures or financial position
is based on assumptions about future events, including economic conditions and
proposed courses of action, based on management's assessment of the relevant
information as of the date hereof.Such financial outlook information should
not be used for purposes other than those for which it is disclosed herein.
CONTACT: Stuart Wooldridge, Investor Relations
Phone: +1 (604) 669-2602 ext. 104
Fax: +1 (604) 662-8858
GLG Life Tech Logo
Press spacebar to pause and continue. Press esc to stop.