VANCOUVER, British Columbia, Sept. 12, 2014 (GLOBE NEWSWIRE) -- GLG Life Tech Corporation (TSX:GLG) ("GLG" or the "Company"), a global leader in the agricultural and commercial development of high-quality natural sweeteners, is pleased to announce that it has finalized an agreement that is expected to result in conversion of a $4.3 million obligation into shares in the Company. The obligation originated with GLG's disposition of its interest in the AN0C joint venture. Pursuant to that disposition, on September 30, 2013, GLG issued a three-year convertible note to China Agricultural Healthy Foods Limited ("CAHFC") with a principal amount of CAD $4,295,532.65 due September 30, 2016, or convertible into common shares of GLG at $1.80 per share.
The agreement recently signed by GLG and CAHFC will amend that note, such that the principal amount would be, upon final regulatory approval, immediately converted into common shares at $1.00 per share which would be at a premium to the September 11th closing pricing of the Company's stock of 435%. Upon conversion, CAHFC would become an insider of GLG holding approximately 11.4% of the issued and outstanding shares of the Company. The TSX has granted conditional approval of the agreement and the amended exercise price, pending its final regulatory review and the clearance of the applicable personal information forms to be submitted by CAHFC. Once the TSX issues final approval, the signed agreement will thereupon become fully effective and the principal balance will be converted into shares at the new rate and the debt obligation will be eliminated.
With this accelerated conversion, GLG will remove from its books this substantial liability.
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. 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. Such forward-looking statements include, without limitation, statements relating to the effectiveness of the agreement and its potential benefit to the Company, as well as statements regarding future debt reduction plans and the risks and uncertainties relating to the conversion of the convertible note. 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, 2013. 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.