GLG Life Tech Corporation Announces Agreement To Transfer Runde Subsidiary and Erase Nearly CAD $79 Million in Debt - Seite 2

Dr. Luke Zhang, the Company's Chairman and CEO, stated: "I am very pleased to have reached agreement, after years of quite complex efforts, to arrange for a transfer of our Runde subsidiary in a manner that preserves the Company's production abilities, even if indirectly, and continues the Company's highest standards for its natural sweetener products, and simultaneously eradicates a majority of the Company's bank debts. This is a fantastic win for GLG and I believe the Company's shareholders will agree that this transaction is an eminently sound way to realize a huge step forward towards our long-term goal of overhauling our balance sheet."

The agreement concerning Runde provides that the equity transfer will only become effective upon completion of the Company's regulatory obligations under TSX rules and regulations, including putting the agreement forth to the Company's shareholders for a shareholder vote. Accordingly, the Company expects to provide shortly its formal Notice of an upcoming shareholder meeting, the subject of which will be this agreement and the underlying transaction.

The Company continues to own and oversee its Runhai stevia and monk fruit manufacturing facility, located in Anhui province. The Company currently centers its stevia and monk fruit production operations at the Runde facility and plans to continue doing so, via Xiaogang and HHY, after the transaction is made fully effective, with the ability to later augment Runde's operations with production operations at Runhai.

While Runhai's pre-existing guarantee of Runde's bank debts will continue unaltered, it is Xiaogang, rather than any of the Company's subsidiaries, that will become the named bearer of the debts and the bank's primary recourse for the debts once the asset transfer becomes fully effective.

(All CAD debt figures above are based on the most recently published financial statements; actual amounts may differ based on the date the transfer becomes effective.)

For further information, please contact:
Simon Springett, Investor Relations
Phone: [phone] ext. 101
Fax: [phone]
Email: [e-mail]

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.