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TSX Venture: ABC
TORONTO, Sept. 25 /CNW/ - Asia Bio-Chem Group Corp. (TSXV: ABC) ("Asia
Bio-Chem" or the "Company") today announced that it has closed its previously
announced acquisition of 100% of the shares of Daqing Biochemical Company Ltd.
("Daqing"). Daqing owns a partially completed, 600,000 tonne corn processing
plant in Zhaoyuan County of Heilongjiang Province in China.
The purchase price of Daqing will be RMB 160 million (approximately
C$24.7 million). The purchase price will be paid 70% in cash at closing and
30% will be in the form of an unsecured note ("Note"). The Note will be
non-interest bearing and become due, in full, 6 months after completion of
construction and commissioning of the plant.
"Now that we have completed the Daqing acquisition we will focus our
efforts on completion of the Daqing plant by mid 2009 to bring our total
processing capacity to 900,000 tonnes per year", stated Mr. Zhiping Wang,
President and CEO of Asia Bio-Chem.
About Asia Bio-Chem Group Corp.
The Company, through its wholly-owned subsidiary in the Peoples Republic
of China ("PRC") is in the business of manufacturing cornstarch and related
products. From its plant in Liaoning Province, the Company produces
approximately 270,000 tonnes of cornstarch, corn germ, gluten and fiber per
year for sale into the domestic market in the PRC.
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
For further information:
For further information: For Corporate Information: Asia Bio-Chem Group
Corp., Suite 2105 - 130 Adelaide Street West, Toronto, Ontario, M5H 3P5,
Attention: Robert Wilson, Tel: (416) 603-7500