GLG Life Tech Corporation Announces Letter of Intent Signed With China
National Cereals, Oils, and Foodstuff Corporation ("COFCO") to Develop Healthy
Stevia Sweetened Products for China Market
VANCOUVER, British Columbia, June 12, 2013 (GLOBE NEWSWIRE) -- GLG Life Tech
Corporation (TSX:GLG) ("GLG" or the "Company"), a vertically-integrated leader
in the agricultural and commercial development of high quality stevia,
announces the signing of a Letter of Intent ("LOI") with COFCO Nutrition and
Health Research Institute Co Ltd. ("COFCO NHRI"), a 100% owned subsidiary of
China National Cereals, Oils, and Foodstuff Corporation ("COFCO"), for a
strategic collaboration for the Chinese market.
The LOI focuses on the two party's cooperation on the research and development
of food and beverage products and on the development, marketing and sale of
stevia extracts and formulated products to promote the development of the
stevia industry, nutrition, and the healthy food industry in China. Under the
LOI terms, COFCO NHRI shall preferentially use the materials, products, and
technologies provided by GLG. The parties shall work together to develop the
strategies and promotions and industrialization of stevia in the process of
developing health food and functional food. The Company expects that
additional agreements will result of this framework agreement and the LOI
specifically provides for future agreements for major developments that are to
China has one of the largest populations of diabetics globally with
approximately 90 million diagnosed, and approximately 200 million people are
classified as obese. Both parties are focused on the health and social
well-being of the Chinese people in the development of products sweetened with
stevia for zero or low calories. In addition, the parties recognize the high
agricultural value of stevia to China's farmers, and the continued requirement
for China to import sweeteners.
The LOI specifies that COFCO NHRI is responsible for introducing the related
co-developed products to COFCO Innovation of Food (Beijing) Co., Ltd and the
sales channel of COFCO. NHRI will also be responsible to bring the stevia
products of GLG to China Mengniu Dairy Company Limited and to assist in the
expansion of the distribution channel of GLG's products.
The LOI also states that investment may occur under the right circumstances,
including COFCO NHRI investment in GLG and other forms of investment.
Dr. Luke Zhang, Chairman and CEO of GLG said, "We are very fortunate to have
entered into this strategic cooperation with COFCO which is on the Fortune 500
list of global companies and is the largest food company in China. We share a
common vision for the need for healthier food and beverages for the China
market and stevia is the only scalable all natural zero calorie sweetener that
can meet the scale requirements for the China market. We have had a lot of
strategic discussions with COFCO Executive over the past several months and we
have a good roadmap to begin execution of their ambitious vision to bring
healthier food and beverages to the China market. We are truly excited to be
the preferred stevia partner to COFCO and to be recognized as the leading
vertically integrated player in the stevia industry."
COFCO HNRI President Xiao Ming Hao stated, "GLG is a company in the global
stevia industry which has developed its own intellectual property and
vertically integrated supply chain covering from seed to shelf. This time, we
will do collaborations using each party's strength; create new mechanisms for
our mutual benefit. We plan to increase the health value of stevia from
developments of technology, basic application, products and quality safety and
to provide more health options for the Chinese diabetic and obese population."
About GLG Life Tech Corporation
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. 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. For further
information, please visit www.glglifetech.com.
COFCO is China's largest integrated agricultural, cereals, oils and foodstuffs
processing enterprise, has been among the Fortune 500 for 19 consecutive years
and is ranked No. 1 among the Top 100 in China's food industry. Worldwide
revenues were estimated to be $28 Billion in 2012, with over 60,000 employees
worldwide. International partners include Coca-Cola Co. and Groupe Danone SA.
About COFCO Nutrition and Health Research Institute Co. Ltd
COFCO Nutrition and Health Research Institute Co., Ltd is the first domestic
enterprise-led R&D center, focusing on the systematic research of nutritional
requirement and metabolic mechanism for the better health and welfare of the
Chinese people, mainly engaged in product development, technology development,
product quality and safety, application research to improve the nutrition and
health value of products, to provide nutrition healthy choice for every
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, 2012. 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
Phone: +1 (604) 669-2602 ext 104
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