TORONTO, March 11, 2016 /CNW/ - Asia Bio-Chem Group Corp. (CSE: ABC) ("Asia Bio-Chem" or the "Company") announces today that, due to the continued high cost of corn in China and the economic downturn experienced over the past three years the Company has become insolvent. While the Company has received financial support from Beidahuang State Farm Group, it has been unable to finalize the ongoing negotiations regarding a strategic transaction with the Group. Due to these factors, the Company has not been able to satisfy its financial obligations including interest and principal payments on its debt obligations. To date the Company's secured creditors have not acted on their security.
As a result of the lack of funds, the Company does not expect to be in a position to complete its year-end audit and, as a result, the Ontario Securities Commission may issue a cease trade order.
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.
SOURCE Asia Bio-Chem Group Corp.
For further information: For Investor Relations Information: Zhiping Wang, CEO, Tel: 86-24-31270656, Email: [email protected]