VANCOUVER, BC / ACCESSWIRE / September 9, 2019 / GLG Life Tech Corporation (TSX:GLG) ("GLG" or the "Company"), a global and agricultural leader in the natural zero-calorie sweetener industry, committed to the sustainable development of high-quality zero-calorie natural sweeteners, is pleased to announce a newly signed agreement with its primary debtholder, China Cinda Assets Management Corporation Anhui Branch ("Cinda"), through which the Company expects to greatly reduce its Chinese bank debt.
In line with the Company's restructuring goals, the Company has developed a plan to improve its capital structure, achieve major reductions in its debt load, and improve its working capital resources. Two key components of this plan are the reduction of its Chinese bank debt and the sale of assets not essential to the Company's business plans. Through extensive negotiations with Cinda, GLG and Cinda have signed an agreement that is expected to result in a 78% reduction of the Company's Chinese bank debt, which is approximately CAD 97 million (RMB equivalent). Under the agreement, the Company will complete a schedule of payments over a two-year period totaling approximately CAD 51 million, which will then result in the waiver of an additional approximately CAD 25 million in principal and interest owed to Cinda. Further, as GLG, Cinda, and an interested buyer have jointly been finalizing contracts for the sale of GLG's "Runhao" facility (buildings and land use rights) to the buyer, Cinda has agreed to defer commencement of the two-year pay schedule until the sale of Runhao is consummated. This sale will both facilitate GLG's payments under the contract with Cinda and enable GLG to optimize its production costs through the elimination of unneeded idle capacity. Through this collaboration with Cinda and the resulting improvements to GLG's capital structure, the Company will have more financial flexibility to improve working capital and fuel the growth of premium sweetener products.