GLG Life Tech Corp. (TSX:GLG), a global leader in the agricultural and commercial development of high quality stevia products announces a new distribution agreement for Canada and the sale of its interest in its consumer products joint venture in China.
Distribution agreement for Canada
GLG has signed a distribution agreement with Quadra Ingredients Ltd. for the distribution and marketing of GLG's stevia extract products throughout the Canadian market. Shaun Richmond, vice president of international sales for GLG, stated "Quadra's national marketing structure and seamless supplier relationships make Quadra a market leader in ingredient distribution services in Canada. With over 30 years of experience and preferred-supplier status with many of Canada's most successful and respected food, beverage and pharmaceutical companies, they are the perfect partner to represent our products."
Christine Infilise, business development manager at Quadra, said; "With Health Canada's approval of stevia in late 2012, and the growth we have already seen in the US and EU markets, we believe that representing a world leader in supplying zero-calorie sweeteners in Canada will complement our product offering to our customers. We see stevia as an important strategic product as more and more attention is paid to reducing sugar consumption."
Sale of interest in consumer products joint venture in China
GLG also wishes to announce that it has transferred its 80 percent interest in Dr. Zhang's All Natural and Zero Calorie Beverage and Foods Co. to the minority 20 percent interest holder, China Agriculture and Healthy Foods Company Limited. Under the previously disclosed strategic cooperation agreement between GLG and the COFCO Nutrition and Health Research Institute Co Ltd., GLG is working with COFCO to develop stevia sweetened beverages and foods for the China market and COFCO will use their own marketing and distributing channels for the co-developed products, and thus continued participation in the Joint Venture was no longer necessary. Commented Dr. Luke Zhang, CEO of GLG: "We continue to develop our relationship with COFCO, and will be their supplier as they introduce stevia sweetened products. As the largest food company in China, their distribution channels reach every consumer in every market. We can concentrate on running our business."
As part of the transaction and to settle amounts owing by the Joint Venture, GLG will issue a three year, zero interest unsecured convertible note with principal amount of $4,295,532.65 that is convertible into the common shares of GLG at a price of $1.80 per share. The Toronto Stock Exchange has granted conditional approval for listing of up to 2,386,407 common shares upon conversion, subject to certain conditions.