VANCOUVER, BC /ACCESSWIRE/April 25, 2021 / GLG Life Tech Corporation GLG (“GLG” or the “Company”), a global and agricultural leader in the zero calorie natural sweetener industry, committed to the sustainable development of high quality zero calorie natural sweeteners, is pleased to announce the formation of a new joint venture partnership through its Chinese subsidiary, Anhui Runhai Biotechnology Joint Stock Company, Ltd. (“Runhai”).

The joint venture, operating as Xinjiang Huanyu Technology Co., Ltd. (“Huanyu”), brings together Xinjiang Luxiang Sugar Industry Co. (“Luxiang”), Ltd., Xiao Gang HZ Health Industrial Park (“Xiao Gang”), and Runhai as part of a vertically integrated company aimed at providing a consumer natural sweetener product line as well as expanded business-to-business stevia sales in the Chinese domestic market.

Huanyu will gather upstream agricultural resources to support downstream production for B2B and B2C sectors, with specialization and integration from harvesting to bulk manufacturing to producing a variety of products for end customers. Luxiang, located in northwest China, where soil, water and sunlight are optimal for growing high-quality stevia leaves and other agricultural products, will produce and supply the agricultural raw materials to joint venturers. Runhai, with its 18 years of technical expertise in manufacturing stevia products, will use this premium stevia leaf to produce its high purity stevia extracts and other specialty stevia products – at the both to support the joint venture and to support GLG’s international customers. Xiaogang, with its history of producing and selling high quality low/zero calorie sweetener consumer products, will use raw materials from both Luxiang and Runhai to produce its line of healthy consumer products. Integrating agriculture into B2B and B2C product manufacturing flows provides Huanyu with a unique complementary advantage in China.

Under the terms of the agreement, Luxiang, a state-owned company, will be the majority shareholder with a 51% share. Runhai will have a 26% share and Xiao Gang will have a 23% share. Luxiang will provide working capital for Huanyu’s production needs as well as production facilities. Runhai provides key idle equipment from its facilities and specialized know-how in the production of stevia products by harnessing a variety of steviol glycosides for sale to food and beverage companies across China. Xiao Gang has special equipment and expertise in the field of natural products which it will bring to the development, production and sale of Huanyu’s consumer products.

While Luxiang will be a major customer of Huanyu, the joint venturers plan to sell their products to customers and businesses across China, both to consumers and to food and beverage companies looking for natural sweeteners. innovative and high quality to use in their own products.

Huanyu expects production to begin in 2023. In the meantime, it plans to access up to 500 million RMB of government funding available to support agricultural initiatives. This funding, if received, will help the joint venturers finance their operations. Additionally, in Runhai’s case, this funding can be used to largely, if not entirely, resolve long-standing debt issues, as the joint venturers have a collective goal of freeing Runhai from debt. This will put Runhai, and therefore the Company, on a much stronger financial footing. Dr. Zhang, Chairman and CEO of Compnay, said, “Our new joint venture provides GLG with new and greater opportunities to access domestic markets in China as well as improve our company’s balance sheet. We are delighted to partner with Luxiang Sugar and Xiaogang Health, two ambitious companies excited to bring healthy products to our Chinese population. »

Runhai will continue to manufacture products for GLG’s international customers through its active production facilities located in Qingdao and Anhui provinces. Serving GLG customers with high quality products remains a priority for Runhai and for GLG; the joint venture opportunity fully complements the Company’s business plans.

For more information, please contact:

Simon Springett, Investor Relations
Phone: +1 (604) 285-2602 ext. 101
Fax: +1 (604) 285-2606
Email: [email protected]

About GLG Life Tech Corporation

GLG Life Tech Corporation is a global leader in providing high purity zero calorie natural sweeteners including Stevia and Monk Fruit extracts used in foods, beverages and dietary supplements. GLG’s vertically integrated operations, which incorporate our Farmer Equity Program and focus on sustainability, cover every step of the stevia and monk fruit supply chains, including seed and non-GMO seedlings, natural propagation, growing and harvesting, proprietary extraction and refining, marketing and distribution of finished products. Additionally, to further meet the varied needs of the food and beverage and supplement industries, GLG’s Naturals+ product line allows it to source a host of complementary ingredients reliably sourced through its network of suppliers in China. . For more 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 “anticipates”, “expects” or “does not expect”, “is planned”, “budget”, ” expected”, “estimates”, “plans”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of these words and expressions or words and expressions which state or indicate that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be carried out.

Although the Company has based these forward-looking statements on its current expectations regarding future events, the statements are not guarantees of the future performance of the Company and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from future results. results expressed or implied by these forward-looking statements. These factors include, among others, the effects of general economic conditions, consumer demand for our products and new orders from our customers and distributors, changes in exchange rates and actions of governmental authorities, uncertainties associated with litigation and negotiations, industry supply levels, competitive pricing pressures and errors in judgment when 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 on March 31, 2022. In light of these factors, the forward-looking events described in this press release may not occur. .

Additionally, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause the actions, events or results are not those 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.

THE SOURCE: GLG Life Tech Corporation

See the source version on accesswire.com:

https://www.accesswire.com/698800/GLG-Life-Tech-Corporation-Announces-Formation-of-Joint-Venture-with-Luxiang-Sugar-and-Xiaogang-Health