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TSX Venture: ABC
TORONTO, Dec. 8 /CNW/ - Asia Bio-Chem Group Corp. (TSXV: ABC) ("Asia Bio-Chem" or the "Company") is pleased to announce that it has successfully completed negotiations and has drawn down a second operating line of credit with China Construction Bank in the amount of RMB 145 million ($22.5 million). The interest rate on this loan is 110% of the Peoples Central Bank Rate (currently the 6-12 month Bank Rate is 5.31%) and the loan is secured against certain assets of the Company.
In addition, the Company is pleased to announce that it has received the remaining RMB 4 million ($620,000) of the one-time subsidy from the municipal government of Tieling, Liaoning Province where our Changtu plant is located. When combined with the initial payment received in the second quarter of this year, the total subsidy amounts to RMB 5 million ($775,000). As discussed in our second quarter MD&A, this one-time subsidy was provided to the Company as compensation for the effect on corn prices resulting from the government's corn purchasing program undertaken in late 2008 and early 2009.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the Peoples Republic of China ("PRC") is in the business of manufacturing cornstarch and related byproducts. From its plants in Liaoning and Heilongjiang Province, the Company has a total capacity of 900,000 tonnes of corn which is processed to produce cornstarch, corn germ, gluten and fiber per year for sale into the domestic Chinese market.
This news release contains certain statements that may be deemed "forward looking statements". 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. 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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
SOURCE Asia Bio-Chem Group Corp.
For further information: For further information: Robert Wilson, (416) 603-7500