GLG Life Tech Corporation Announces Major Milestone in Its Debt Restructuring Progress

Vancouver, British Columbia (FSCwire) - GLG Life Tech Corporation (TSX: GLG) (“GLG” or the “Company”), a global leader in the agricultural and commercial development of high-quality zero-calorie natural sweeteners, is pleased to announce today that it has reached a pivotal milestone in its efforts to restructure the Company’s Chinese-held debt.

Today, the Company is providing an update to GLG’s February 2018 news release, in which the Company announced that it had received an official letter from China Cinda Assets Management Corporation Anhui Branch (“Cinda”) confirming their intention to move forward in 2018 as a new shareholder in GLG’s new joint stock company – Anhui Runhai Biotechnology Joint Stock Company, Ltd. (“Runhai”) – and to resolve the Company’s Chinese bank debt obligations.

Earlier this month, the Company’s two largest Chinese debtholders – Cinda and China Hua Rong Assets Management Shandong Branch (“Hua Rong”) – executed an agreement for the cash purchase of approximately RMB 231 million in principal and interest, or approximately CAD $45 million, with respect to the Company’s Chinese bank debt held by one of its Chinese subsidiaries.  Under the terms of the agreement, this amount will now be payable by the Company, through its Chinese subsidiary, to Cinda instead of Hua Rong. The Company will retain an approximately RMB 18 million or CAD $3.6 million interest liability payable to Hua Rong through that subsidiary.

This is a very significant event towards completion of the debt restructuring plans as discussed in the Company’s 2017 Management Proxy Circular.  As a result, Cinda becomes the majority debtholder of GLG’s outstanding China bank debt, increasing its debt holding from 24% up to 74% of GLG’s outstanding China bank debt principal.  Further, Cinda is actively negotiating for the buyout of the Company’s remaining Chinese bank debt and expects to complete that buyout in the near future.  By making this significant move to consolidate the Company’s Chinese bank debts, Cinda is well on the path to converting the bank debt it holds into a shareholding in Runhai. 

Cinda’s addition of approximately CAD $35.8 million in debt principal rights (along with approximately CAD $9.6 million in interest rights) substantially increases its total debt principal holding to CAD $47.6 million or an increase of over 300%.  Cinda’s cash purchase of Hua Rong’s debt holdings in the Company’s subsidiary, along with its plans to acquire all remaining Chinese bank debt before converting the full debt position into equity and becoming a shareholder in Runhai, reflects its belief in the Company’s ability to become profitable, to continue acquiring market share through innovation and global sales efforts, and to continue improving the Company’s position as a leading global zero-calorie, natural sweetener producer. 

Dr. Luke Zhang, CEO and Chairman of GLG, commented: “We are very pleased to have Cinda Anhui take this major debt position in anticipation of realizing our Phase II Debt Restructuring goals.  We will continue to work closely with Cinda as they complete their debt acquisition and finalize plans for conversion of the debts into equity in our Runhai joint stock company.  With the debts removed from our balance sheet and Cinda as a shareholder, we expect to be in an excellent position to take the Company to the next level in our pursuit of becoming the leading stevia and natural sweetener producer globally.  After more than two years of intense efforts to fundamentally restructure our debts, rebuild our balance sheet, and acquire new shareholders that share our vision for growth, we are finally on the verge of completing this ambitious restructuring project.”

For further information, please contact:

Brian Meadows, President

Phone: +1 (604) 285-2602 ext. 105

Fax: +1 (604) 285-2606

Email: ir@glglifetech.com

About GLG Life Tech Corporation

GLG Life Tech Corporation is a global leader in the supply of high-purity zero calorie natural sweeteners including stevia and monk fruit extracts used in food, beverages, and dietary supplements.  GLG’s vertically integrated operations, which incorporate our Fairness to Farmers program and emphasize sustainability throughout, cover each step in the stevia and monk fruit supply chains including non-GMO seed and seedling breeding, natural propagation, growth and harvest, proprietary extraction and refining, marketing and distribution of the finished products.  Additionally, to further meet the varied needs of the food and beverage and supplement industries, GLG’s Naturals+ product line enables it to supply a host of complementary ingredients reliably sourced through its 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. 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 published March 31, 2018.  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.

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