VANCOUVER, British Columbia, July 23, 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 signed an agreement under which it will produce and supply Luo Han Guo (Chinese monk fruit) extract products to one of the global leaders in the food industry. GLG expects revenues from this twelve-month agreement to be in the range of $9 to $12 million (USD), and notes that achieving these revenues will be dependent on both the market price for Luo Han Guo fruit as well as the Company's conformance to the customer's product specifications. While initially encompassing a one-year term corresponding to the 2014 growing season, harvest, and subsequent production, GLG and the customer have the express option to extend the agreement over future years.
This agreement not only marks GLG's entry into the Luo Han Guo production and supply space, it also immediately positions GLG to be a leading producer of Luo Han Guo products, and will enable the Company to capitalize significantly on its efforts over the past year. GLG previously announced that it had developed a vertically integrated supply chain for the Luo Han Guo business, including agriculture and advanced processing and purification capabilities. Earlier this year, GLG filed in China a patent for its Luo Han Guo processing technology. The Company has also undertaken the GRAS self-affirmation of its Luo Han Guo extract products and, in May 2014, submitted its notification to the FDA of self-affirmed GRAS status.
Company Chairman and CEO Dr. Luke Zhang shared his views on achieving this agreement: "We are very pleased to have concluded this important agreement with one of the world's leading food industry companies and we believe that it reflects the strong potential of the Luo Han Guo market opportunity for GLG. GLG expects to be in production starting in the fourth quarter of 2014 and we look forward to many years of future growth in the Luo Han Guo business. This market opportunity leverages GLG's expertise in China agriculture and extraction and refining capabilities."
Producing Luo Han Guo products is a natural extension of GLG's core stevia product line; these product lines are each naturally sourced sweetener ingredients and Luo Han Guo is often used complementarily. Furthermore, as Dr. Zhang noted, GLG's experience as a global market leader, agricultural expert, and technological innovator in stevia has facilitated the Company's entry into Luo Han Guo, as much of the expertise gained in developing and optimizing its vertically integrated stevia operations has lent itself well to achieving the same for Luo Han Guo.
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 regarding expected revenues (both near- and long-term), expected growth, expected timing of product deliveries, and the potential size of the luo han guo market and related opportunities; statements evaluating the market; and statements regarding the potential demand for stevia and other products and general economic conditions and discussions of 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 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.