TORONTO, March 7, 2014 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC)
("Asia Bio-Chem" as the "Company") announces further to its prior press
release dated February 17, 2014 that it has been advised by it's
controlling shareholders that a letter of intent ("LOI") has been
completed which contemplates the sale of their shares of Asia Bio-Chem
to a subsidiary of the Chinese state-owned Beidahuang State Farm Group
General Corp. ("State Farm").
Under the terms of the LOI, the Chairman and CEO, Zhiping Wang, together
with another significant shareholder, Yong Chin Wang (together, the
"Controlling Shareholders") intend to sell their interest in Asia
Bio-Chem to a subsidiary of the State Farm. The Controlling
Shareholders then intend to invest the proceeds of the sale back into
the subsidiary of State Farm and become shareholders of the State Farm
subsidiary. It is expected that this sale will take place in the
second quarter of fiscal 2014.
"We are very pleased to announce this LOI to create a significant corn
processing entity with 10 processing plants under the State Farm. Upon
closing, Asia Bio Chem will become the only foreign-listed affiliate of
the State Farm organization. Asia Bio-Chem expects to benefit from
financial support and integration with the State Farm corn purchasing
and down-stream processing capabilities" stated Mr. Zhiping Wang,
President and CEO of Asia Bio-Chem.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the
People's Republic of China ("PRC"), is in the business of processing
corn into cornstarch, germ and gluten for sale to the domestic Chinese
market. From its plants in Liaoning and Heilongjiang Province, the
Company has a total processing capacity of 1.5 million tones of corn
About Beidahuang State Farm Group General Corp
Headquartered in Harbin, Heilongjiang province, the Group is a Chinese
state owned enterprise responsible for agricultural development. The
Group operates China's biggest farming business including 5.4 million
hectares of farmland providing 10% of total grain food supplies to the
Chinese population. The Group is involved in forestry, livestock,
dairy, grain farming and processing.
This news release contains certain statements that may be deemed
"forward looking statements". Such statements include, but are not
limited to statements regarding the proposed sale of shares to State
Farm by the Controlling Shareholders. The forward looking statements
and information are based on certain key expectations and assumptions
made by the Company, including expectations and assumptions concerning
the completion of the proposed transactions described in this news
release. Forward looking statements are statements that are not
historical facts and are generally, but not always, identified by the
words "expects,", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur.
Although the Company believes the expectations expressed in such
forward looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results
may differ materially from those in forward looking statements. Forward
looking statements are based on the beliefs, estimates and opinions of
the Company's management on the date the statements are made. No
assurance can be given that any events anticipated by the forward
looking statements will transpire or occur. In particular, no assurance
can be given as to whether the proposed transaction described in this
news release will be completed and what benefits the transaction will
have for the Company. In respect of the forward looking information and
statements concerning the anticipated benefits and the completion of
the proposed transaction described in this news release, the Company
has provided such in reliance on certain assumptions that it believes
are reasonable at this time. Accordingly, readers should not place
undue reliance on forward looking statements and the Company can give
no assurances that they will prove correct. The Company undertakes no
obligation to update these forward looking statements, except as
required by law, in the event that management's beliefs, estimates or
opinions, or other factors, should change.
SOURCE: Asia Bio-Chem Group Corp.
For further information:
For Corporate Information regarding Asia Bio-Chem:
Executive Vice President
Asia Bio-Chem Group Corp.