GLG Life Tech Corporation Announces Major Asset Transfer Agreement

GLG Life Tech Corporation, a global leader and agricultural player in the zero-calorie natural sweeteners industry, has officially announced the signing of an agreement to transfer its production subsidiary, Qingdao Runde Biotechnology Company, Ltd., to Fengyang Xiaogang Hongzhang Health Industrial Park Co. Ltd. This agreement, subject to shareholder and regulatory approval, is expected to reduce GLG's bank debt by nearly 79 million CAD. Signed on January 26, 2024, it is part of a multi-year effort to significantly improve the company's balance sheet.

The total transfer of Runde's shares to Xiaogang will result in the transfer of ownership of tangible assets and responsibility for Runde's bank debts to Xiaogang, while preserving GLG's intellectual property rights. Additional agreements will allow Xiaogang to use Runde for the benefit of GLG and its clients. The transfer of these assets is expected to eliminate the majority of the company's bank debt, representing a reduction of approximately 90% of its total debt, estimated at 123 million CAD.

Dr. Luke Zhang, CEO of the company, expressed satisfaction with this agreement, seeing it as a significant step towards the long-term goal of restructuring the company's balance sheet. A shareholders' meeting is scheduled to finalize this agreement.