VANCOUVER, British Columbia, Sept. 5, 2013 (GLOBE NEWSWIRE) -- GLG Life Tech Corporation (TSX:GLG) ("GLG" or the "Company") a global leader in the agricultural and commercial development of high quality stevia products announces a new distribution agreement for Canada and the sale of its interest in its consumer products joint venture in China.
DISTRIBUTION AGREEMENT FOR CANADA
GLG has signed a distribution agreement with Quadra Ingredients Ltd. ("Quadra") for the distribution and marketing of GLG's stevia extract products throughout the Canadian market. Shaun Richmond, Vice President of International Sales for GLG, stated "Quadra's national marketing structure and seamless supplier relationships make Quadra a market leader in ingredient distribution services in Canada. With over 30 years of experience and preferred-supplier status with many of Canada's most successful and respected food, beverage and pharmaceutical companies, they are the perfect partner to represent our products."
Christine Infilise, Business Development Manager at Quadra, said; "With Health Canada's approval of stevia in late 2012, and the growth we have already seen in the US and EU markets, we believe that representing a world leader in supplying zero-calorie sweeteners in Canada will complement our product offering to our customers. We see stevia as an important strategic product as more and more attention is paid to reducing sugar consumption."
SALE OF INTEREST IN CONSUMER PRODUCTS JOINT VENTURE IN CHINA
GLG also wishes to announce that it has transferred its 80% interest in Dr. Zhang's All Natural and Zero Calorie Beverage and Foods Company (the "Joint Venture") to the minority 20% interest holder, China Agriculture and Healthy Foods Company Limited. Under the previously disclosed strategic cooperation agreement between GLG and the COFCO Nutrition and Health Research Institute Co Ltd., GLG is working with COFCO to develop stevia sweetened beverages and foods for the China market and COFCO will use their own marketing and distributing channels for the co-developed products, and thus continued participation in the Joint Venture was no longer necessary. Commented Dr. Luke Zhang, CEO of GLG: "We continue to develop our relationship with COFCO, and will be their supplier as they introduce stevia sweetened products. As the largest food company in China, their distribution channels reach every consumer in every market. We can concentrate on running our business."
As part of the transaction and to settle amounts owing by the Joint Venture, GLG will issue a three year, zero interest unsecured convertible note with principal amount of $4,295,532.65 that is convertible into the common shares of GLG at a price of $1.80 per share. The Toronto Stock Exchange has granted conditional approval for listing of up to 2,386,407 common shares upon conversion, subject to certain conditions.
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
About Quadra Ingredients Ltd.
Quadra is a market leader in the distribution of ingredients in Canada, with five owned facilities, and more than 40 stocking locations strategically located throughout Canada. Quadra is recognized as being one of the best small and medium employers in the country, and among Canada's 50 Best Managed Companies, based on Deloitte's list of the country's best privately held companies. For more information, please contact Christine Infilise at Christine_infilise@quadra.ca
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.