News Column

GLG Life Tech Corporation Announces Second Quarter 2014 Financial results

August 12, 2014

VANCOUVER, British Columbia, Aug. 12, 2014 (GLOBE NEWSWIRE) -- GLG Life Tech Corporation (TSX:GLG) ("GLG" or the "Company"), a vertically-integrated leader in the agricultural and commercial development of high-quality stevia and other natural sweeteners, announces financial results for the six months ended June 30, 2014. The complete set of interim financial statements and management discussion and analysis are available on SEDAR and on the Company's website at www.glglifetech.com.

FINANCIAL HIGHLIGHTS AND CORPORATE DEVELOPMENTS

Revenue Growth Strategy Continues to Produce Results

For the six months ended June 30, 2014, GLG achieved revenue growth of 30% compared to the same period last year, resulting in $8.7 million in year-to-date revenue. We continue to generate increased revenue numbers through our focus on a strategy of establishing relationships with international customers that have a need for ongoing deliveries of higher-purity stevia extracts, leading to recurring, higher-value revenues. While we continue to also sell a range of lower-purity stevia extracts to other China-based stevia providers and Asian customers, our international focus has markedly increased the contribution to sales and revenue growth. International sales contributed 51% of year-to-date 2014 revenues, compared with a 31% contribution in the first quarter 2013. International sales have more than doubled year-over-year.

GLG Secures $10M Luo Han Guo Contract with Global Leader in Food Industry

On July 23, 2014, GLG announced an agreement to supply a global leader in the food industry with Luo Han Guo (aka Chinese monk fruit) extract, thereby formally marking GLG's entry into the Luo Han Guo market. The value of the contract is material and it is estimated at between $9 and $12 million (USD) over a twelve-month period, commencing with this fall's Luo Han Guo harvest. The expected value of this one contract (assuming the midpoint value of $10.5 million) is equivalent to approximately 65% of 2013 revenues. GLG therefore expects this contract to materially increase revenues beginning late 2014 and extending well into 2015. Further, GLG and the customer have the express option to extend the agreement over future years.

This agreement not only marks GLG's entry into the Luo Han Guo production and supply space, it also immediately positions GLG to be a leading producer of Luo Han Guo products, and will enable the Company to capitalize significantly on its efforts over the past year. GLG previously announced that it had developed a vertically integrated supply chain for the Luo Han Guo business, including agriculture and advanced processing and purification capabilities. Earlier this year, GLG filed in China a patent for its Luo Han Guo processing technology. The Company has also undertaken the GRAS self-affirmation of its Luo Han Guo extract products and, in May 2014, submitted its notification to the FDA of self-affirmed GRAS status of its Luo Han Guo extract products.

Producing Luo Han Guo extract products is a natural extension of GLG's core stevia extract product line; these product lines are each naturally sourced sweetener ingredients and Luo Han Guo is often used complementarily. GLG's experience as a global market leader, agricultural expert, and technological innovator in stevia has facilitated the entry into Luo Han Guo, as much of the expertise gained in developing and optimizing our vertically integrated stevia operations has lent itself well to achieving the same for Luo Han Guo. We have already received a number of other expressions of interest in our Luo Han Guo extract products and capabilities.

GLG's Naturals+ Product Sales Begin

Since expanding our product portfolio beyond stevia (and now, Luo Han Guo) with the GLG Naturals+ line of complementary natural ingredients, we have been working on several agreements for the supply of these Naturals+ products, some of which are expected to have a significant effect on future revenues. Our Naturals+ product line is premised on sourcing high-quality natural and functional food ingredients from China at attractive prices through a unique certification program designed to address the concerns of international food and beverage companies. Our deep familiarity with international food safety standards and supply chain management has helped us establish strong relationships with a network of Chinese suppliers managed under our R8 program, which gives our customers the assurances they require to source these important ingredients through GLG.

We are now in the process of shipping our first Naturals+ order. We look forward to securing agreements for the further supply of Naturals+ ingredients as the year progresses. This product line represents not only an additional source of potentially significant revenues, but the complementary nature of the Naturals+ products with our core sweetener products is expected to open up new opportunities in the stevia and Luo Han Guo spaces, and vice-versa.

GLG Furthers Its Commitment to the GRAS Program; Leads the Industry in GRAS Certifications

In the second quarter, we announced two additional filings of Generally Recognized as Safe ("GRAS") notifications to the United States Food and Drug Administration ("FDA"), and receipt of one Letter of No Objection from the FDA for an earlier notification. We filed GRAS notifications for both our high-purity Rebaudioside M stevia extract product and for our Luo Han Guo extract products, and the FDA's Letter of No Objection completed the GRAS process for our RebSweet™ and AnySweetPLUS™ stevia extract products.

The notifications and letter each represents many months of work to develop the product and all required documentation under the FDA-administered GRAS process to demonstrate that each extract meets the FDA's criteria for safety. Each study included in-depth consultation with GRAS Associates, LLC, who convened an independent panel of scientists to spearhead the safety assessments.  

Consistent with its role as a leader in the sweetener industry, GLG continues to be at the forefront of stevia-related GRAS certifications. GLG believes that a more recent submission to the FDA establishes it as the first company to submit GRAS notification to the FDA for Rebaudioside C. We have the largest number of stevia products certified under the GRAS process including high-purity Rebaudioside A and other Rebaudioside A products, high-purity stevioside, high-purity Rebaudioside M and now high-purity Rebaudioside C, as well as Luo Han Guo extracts of various purities.  Additionally, GRAS work is currently underway for high-purity Rebaudioside D. These many submissions and certifications demonstrate our commitment to ensuring that our full complement of naturally sourced sweetener products is compliant with the FDA GRAS program.  

Launch of organipure™

On March 7, 2014, we announced our launch of a new line of stevia sweeteners—"organipureTM". The organipureTM line includes purity levels that pair the clean finish and rounded sweetness that GLG stevia extracts are known for with organic certifications that are recognized both in North America and Europe. GLG offers the largest portfolio of stevia extract-based sweetener solutions globally, providing a number of options within the organic line, allowing for the use of organipureTM stevia extract in both high-end and cost-constrained formulations aiming to provide consumers with an organic certified premium finished product. organipureTM is a natural step in the evolution of GLG's stevia offerings after extensive consultation with its customers and distribution partners, and represents a premium quality organic product with an exceptional taste profile.

Additional Second Quarter Financial Highlights

Our gross margin for the three months ended June 30, 2014, improved significantly over the comparable quarter in 2013, increasing 51 percentage points to a positive 9%. Gross margin for the six months ended June 30, 2014, was slightly negative at negative 2%. Capacity charges resulting from idle facilities, which would otherwise ordinarily flow to inventory, continue to negatively affect our gross margins.

Our loss per share in the second quarter 2014, improved by 62% to a loss per share of 8 cents compared to the second quarter 2013 (loss of 21 cents per share).

Our loss per share for the six months ended June 30, 2014, improved by 28% to a loss per share of 23 cents compared to the six months in 2013 (loss of 32 cents per share).

Highlights of Non-GAAP Financial Measures

Gross margin before the effect of capacity charges improved to 39% for the three months ended June 30, 2014, compared to 8% for the comparable period in 2013 and 29% for the six months ended June 30, 2014, compared to 20% for the comparable period in 2013.

EBITDA for the quarter ended June 30, 2014, also improved significantly over 2013, coming in at $0.6 million or 16% of revenues, compared to negative $1.1 million or negative 33% of revenues for the same period in 2013. EBITDA for the six months ended June 30, 2014, also improved significantly over the same period in 2013, coming in at negative $1.7 million or negative 20% of revenues, compared to negative $1.8 million or negative 27% of revenues for the same period in 2013.

FINANCIAL AND OPERATIONAL RESULTS

As noted above, the complete set of interim financial statements and management discussion and analysis are available on SEDAR and on the Company's website at www.glglifetech.com.   

Results from Operations

The following results from operations have been derived from and should be read in conjunction with the Company's annual consolidated financial statements for 2013 and the condensed interim consolidated financial statements for the six month period ended June 30, 2014.

 
In thousands Canadian $, except per share amounts3 Months Ended June 30% Change6 months Ended June 30% Change
 20142013 20142013 
Revenue$4,008$3,445 16%$8,671$6,688 30%
Cost of Sales $3,634$4,910 (26%)$8,851$8,590 3%
% of Revenue 91% 143% (52%) 102% 128% (26%)
Gross Profit (Loss)$374 ($1,465) (126%) ($180) ($1,903) (91%)
% of Revenue 9% (43%) 52% (2%) (28%) 26%
Expenses $2,327$3,616 (36%)$4,286$5,271 (19%)
% of Revenue 58% 105% (47%) 49% 79% (29%)
Loss from Operations  ($1,953) ($5,080) (62%) ($4,466) ($7,173) (38%)
% of Revenue (49%) (147%) (377%) (51%) (107%) (127%)
Other Income (Expenses) ($824) ($1,292) (36%) ($3,283) ($2,835) 16%
% of Revenue (21%) (37%) (222%) (38%) (42%) 53%
Net (Loss) before Income Taxes  ($2,777) ($6,372) (56%) ($7,748) ($10,008) (23%)
% of Revenue (69%) (185%) (345%) (89%) (150%) (76%)
Net (Loss) ($2,809) ($6,794) (59%) ($7,780) ($10,519) (26%)
% of Revenue (70%) (197%) (359%) (90%) (157%) (88%)
Net (Loss) from continuing operations ($2,809) ($6,372) (56%) ($7,780) ($10,008) (22%)
% of Revenue (70%) (185%) 115% (90%) (150%) 60%
Net gain (loss) from discontinued operations $0 ($422) (100%)$0 ($1) (100%)
% of Revenue 0% 0% 0% 0% 0% 0%
Loss per share (LPS, Basic & Diluted) ($0.08) ($0.21) (62%) ($0.23) ($0.32) (28%)
Loss per share from continuing operations (LPS, Basic & Diluted) ($0.08) ($0.19) (58%) ($0.23) ($0.30) (23%)
Loss per share from discontinued operations (LPS, Basic & Diluted)$0.00 ($0.01) (100%)$0.00 ($0.02) (100%)
Other Comprehensive Income (Loss) from continuing operations ($1,696)$3,703 (146%) ($1,846)$4,923 (138%)
% of Revenue (42%) 107% (150%) (21%) 74% (95%)
Other Comprehensive Income (Loss) from discontinued operations$0 ($377) (100%)$0 ($315) (100%)
% of Revenue 0% (11%) (11%) 0% (5%) (337%)
Total Comprehensive Income (Loss) ($4,505) ($3,468) 30% ($9,626) ($5,912) 63%
% of Revenue (112%) (101%) 183% (111%) (88%) 212%


Revenue

Revenue for the three months ended June 30, 2014, was $4.0 million, an increase of 18% compared to $3.4 million in revenue for the same period last year. 

This 18% increase in sales comparing the second quarter in 2014 to the second quarter in 2013 was driven by higher volumes of products sold internationally compared to the prior year. The main revenue increase came from international sales in the second quarter of 2014 compared to the prior period, reflecting the Company's continuing strategy of moving away from sales of lower-purity stevia extract sales to other China-based stevia providers, instead pursuing international customers that generate monthly recurring revenues from higher-purity stevia extracts. China revenues for the second quarter were down 10% from the comparable period. 

Revenue for the six months ended June 30, 2014, was $8.7 million, an increase of 30% compared to $6.7 million in revenue for the same period last year. 

This 30% increase in sales comparing the first six months in 2014 to the first six months in 2013 was driven by higher volumes of products sold internationally compared to the prior year. The main revenue increase came from international sales in the second quarter of 2014 compared to the prior period, reflecting the Company's continuing strategy of moving away from sales of lower-purity stevia extract sales to other China-based stevia providers, instead pursuing international customers that generate monthly recurring revenues from higher-purity stevia extracts. International sales contributed 51% of year to date 2014 revenues compared to only 31% for the comparable period in 2013. International sales were up 206% year-over-year. China revenues for the second quarter were down 6% from the comparable period.

Cost of Sales

For the three months ended June 30, 2014, the cost of sales was $3.6 million compared to $4.9 million in cost of sales for the same period last year (a $1.3 million or 27% decrease). Cost of sales as a percentage of revenues was 91% compared to 143% in the prior period, a decrease of 52 percentage points. The cost of sales as a percentage of revenue was lower for the three months period ended June 30, 2014, compared to prior year due to the impact of (1) lower material costs and (2) lower capacity charges. Capacity charges charged to the cost of goods sold ordinarily would flow to inventory and is the largest factor on reported gross margin. Only two of GLG's manufacturing facilities were operating during the second quarter and capacity charges of $1.2 million were charged to cost of sales (representing 33% of cost of sales) compared to $1.7 million charged to cost of sales in 2013 (representing 35% of cost of sales). 

Cost of sales for the six months ended June 30, 2014, was $8.9 million compared to $8.6 million for the same period last year or an increase of 3%. Cost of sales as a percentage of revenues was 102% compared to 128% in the prior period, a decrease of 26 percentage points. The cost of sales as a percentage of revenue was lower for the six months period ended June 30, 2014, compared to prior year due to the impact of (1) lower material costs and (2) lower capacity charges. Capacity charges charged to the cost of goods sold ordinarily would flow to inventory and the largest factor on reported gross margin. Only two of GLG's manufacturing facilities were operating during the six months ended June 30, 2014, and capacity charges of $2.7 million were charged to cost of sales (representing 30% of cost of sales) compared to $3.2 million charged to cost of sales in 2013 (representing 37% of cost of sales).

Gross Profit (Loss)

Gross profit for the three months ended June 30, 2014, was $0.4 million, an increase of $1.9 million over $1.5 million in gross loss for the comparable period in 2013. The gross profit margin for the three-month period ended June 30, 2014, was 9% compared to a negative 43% for the three months ended June 30, 2013, or an improvement of 52 percentage points from the previous year. The gross margin for the three-month period ended June 30, 2014, was impacted by (1) general price increases for stevia extracts during the quarter, (2) lower material costs and (3) capacity and other fixed charges to the cost of goods sold. These capacity charges ordinarily would flow to inventory; however, only two of GLG's manufacturing facilities were operating during the quarter and capacity charges of approximately $1.2 million were incurred (compared to $1.7 million in 2013).

Gross loss for the six months ended June 30, 2014, was $0.2 million, a decrease of 88% over $1.7 million in gross loss for the comparable period in 2013. The gross profit margin for the six-month period ended June 30, 2014, was negative 2% compared to negative 28% for the six months ended June 30, 2013, or an improvement of 26 percentage points from the previous year. The gross margin for the three-month period ended was impacted by (1) general price increases for stevia extracts during the second quarter, (2) lower material costs incurred during the second quarter and (3) capacity and other fixed charges to the cost of goods sold for the six-month period ended June 30, 2014. As noted above, these capacity charges ordinarily would flow to inventory, but instead, capacity charges of approximately $2.7 million were incurred (compared to $3.2 million in 2013).

Selling, General, and Administration Expenses

Selling, General and Administration ("SG&A") expenses include sales, marketing, general, and administration costs ("G&A"), stock-based compensation, and depreciation and amortization expenses on G&A fixed assets. A breakdown of SG&A expenses into these components is presented below:

In thousands Canadian $3 Months Ended June 30% Change6 months Ended June 30% Change
 20142013 20142013 
G&A Exp$1,782$1,391 28%$3,113$2,730 14%
Provision for receivables Stevia$0$1,777 (100%)$8$1,777 (100%)
Stock Based Compensation Exp$455$236 93%$897$482 86%
Amortization Exp$89$212 (58%)$267$281 (5%)
Total $2,327$3,616 (36%)$4,286$5,271 (19%)


G&A including provision for receivables for the three months ended June 30, 2014, was $1.8 million compared to $3.2 million in the same period in 2013 or a $1.5 million decrease year-over-year. The majority of the decrease was due to a reduction in the impairment charges against accounts receivable in the current period ($nil) compared to the prior period ($1.8 million). This decrease was offset by an increase in salary and office-related expenses of $0.2 million related to higher sales activities and $0.1 million research and development expenses related to the Company's GRAS program.

G&A for the six months ended June 30, 2014, was $3.1 million compared to $4.5 million in the same period in 2013 or a $1.4 million decrease year-over-year. The majority of the decrease was due to a reduction in the impairment charges against accounts receivable in the current period ($0.0 million) compared to the prior period ($1.8 million). This decrease was offset by an increase in salary and office related expenses of $0.2 million related to higher sales activities and $0.1 million research and development expenses related to the Company's GRAS program.

Net Loss Attributable to the Company

In thousands Canadian $3 Months Ended June 30% Change6 months Ended June 30% Change
 20142013 20142013 
Net Loss ($2,809) ($6,794) (59%) ($7,780) ($10,519) (26%)
% of revenue (70%) (185%) 115% (90%) (150%) 60%


For the three months ended June 30, 2014, the Company had a net loss attributable to the Company of $2.8 million, a decrease of $4.0 million or a 56% improvement over the comparable period in 2013 ($6.8 million loss). The decrease in net loss was driven by: (1) an increase in gross profit of $1.8 million, (2) a decrease in other expenses of $0.5 million, (3) a decrease in SG&A expenses of $1.3 million and (4) a decrease in loss from discontinued operations of $0.4 million.

For the six months ended June 30, 2014, the Company had a net loss attributable to the Company of $7.8 million, a decrease of $2.7 million over the comparable period in 2013 ($10.5 million loss). The decrease in net loss was driven by: (1) an increase in gross profit of $1.7 million, (2) a decrease in SG&A expenses of $1.0 million and (3) a decrease in loss from discontinued operations of $0.5 million. These gains were offset by (4) an increase in other expenses of $0.5 million.

NON-GAAP Financial Measures

Gross Profit (Loss) before capacity charges

This non-GAAP financial measure shows the gross profit (loss) before the impact of idle capacity charges are reflected on the gross profit margin. GLG had only 50% of its production facilities in operation in the first six months of 2014 and idle capacity charges have a material impact on the gross profit (loss) line in the financial statements. 

Gross Profit (Loss) before capacity charges for the three months ended June 30, 2014, was $1.6 million or 39% of second quarter revenues, compared to $0.3 million or 8% of second quarter revenues for the same period in 2013. Gross Profit (Loss) before capacity charges improved from the comparable period due to lower-cost stevia extract materials used in the second quarter as well as production cost improvements experienced during the quarter as production volumes improved from the previous year and due to price increases implemented during the second quarter of 2014.

Gross Margin before capacity charges for the six months ended June 30, 2014, was $2.5 million or 29% of six month revenues, compared to $1.3 million or 20% of six month revenues for the same period in 2013. Gross Profit (Loss) before capacity charges improved from the comparable period due to the sourcing of lower-cost stevia extract materials used in the second quarter, higher production volumes for the six months ended June 30, 2014, compared to the prior year and higher pricing implemented during the second quarter of 2014.

Earnings before Interest Taxes and Depreciation ("EBITDA") and EBITDA Margin

Consolidated EBITDA

EBITDA for the quarter ended June 30, 2014, was $0.6 million or 16% of revenues, compared to negative $1.1 million or negative 33% of revenues for the same period in 2013. EBITDA improved by 49 percentage points for the three-month period ended June 30, 2014, driven by lower-cost stevia extract materials used in the second quarter as well as production cost improvements experienced during the quarter as production volumes improved from the previous year and due to price increases implemented during the second quarter of 2014.

EBITDA for the six months ended June 30, 2014, was negative $1.7 million or negative 20% of revenues compared to negative $1.8 million or negative 27% of revenues for the six months ended June 30, 2013. EBITDA improved by 7 percentage points for the six month period ended June 30, 2014, driven by lower-cost stevia extract materials used in the second quarter as well as production cost improvements experienced during the quarter as production volumes improved from the previous year and due to price increases implemented during the second quarter of 2014.

 
In thousands Canadian $3 Months Ended June 30% Change6 Months Ended June 30% Change
 20142013 20142013 
Loss Before Income Taxes and Non-Controlling Interests ($2,809) ($6,794) (59%) ($7,780) ($10,519) (26%)
Add:            
 Provision for inventory write-off  ($1,017)  -   -  ($1,017)  -   - 
 Provision for receivables  -  1,777 (100%) -  1,777  - 
 Net Interest Expense $1,829$1,741 5%$3,733$3,576 4%
 Depreciation and Amortization $1,565$1,413 11%$2,355$2,144 10%
 Foreign Exchange Loss (Gain) $620$447 39%$80$740 (89%)
 Non-Cash Share Compensation $455$295 54%$897$482 86%
 EBITDA $644 ($1,121) (157%) ($1,732) ($1,800) (4%)
 EBITDA as a % of revenue  16% (33%) (149%) (20%) (27%) (26%)


Liquidity and Capital Resources

 
In thousands Canadian $30-Jun-1431-Dec-13
 Cash and Cash Equivalents $2,470$5,133
 Working Capital  ($38,538) ($29,445)
 Total Assets $78,508$87,796
 Total Liabilities $100,605$101,164
 Loan Payable ($44,721$40,663
 Loan Payable (>1 year) $17,080$23,010
Total Equity ($22,097) ($13,367)


The Company continues to progress with the following measures to manage cash flow of the Company: paying down short-term loans and refinancing with longer-term debt with its Chairman, reducing accounts payable and negotiating with creditors for extended payment terms, working closely with the banks to manage their loans, and reducing operating expenditures including general and administrative expenses and production-related expenses. During the six months ended June 30, 2014, total loans payable decreased from $63.7 million as of December 31, 2013, to $61.8 million or a reduction of $1.9 million. The Company is currently also exploring the possible sale of certain non-operating facilities as another possibility to address the negative working capital situation.  

Cash Flows: Three months ended June 30, 2014 and 2013

Cash used in operating activities was $0.6 million in the three month period ended June 30, 2014, compared to $0.2 million generated by operating activities in the same period of 2013. Cash used by operating activities decreased by $0.8 million year-over-year. (1) Cash generated from operations prior to changes in non-cash working capital is $0.6 million higher than the prior period, and (2) cash generated from non-cash working capital was $1.8 million lower in the current period compared to the same period in 2013. (3) Lastly cash from discontinued operations in 2013 used an additional $0.4 million in cash. The $1.8 million lower cash generated from non-cash working capital in the three months ended June 30, 2014, compared to the comparative 2013 period, was due to changes in (1) the decrease in cash generated from accounts receivable of $0.3 million, (2) the decrease in cash generated by inventory of $1.7 million, and (3) the decrease in cash from taxes recoverable of $0.1 million. These were offset by (4) the increase in the use of accounts payable and interest payable of $0.1 million, and (5) the decrease in cash use for prepaid expenses of $0.2 million.

Cash used by investing activities was $0.0 million during the second quarter of 2014, compared to cash used by investing activities of $0.0 million in the same period in 2013.  

Cash from financing activities was negative $0.4 million in the second quarter of 2014 compared to cash from financing of $3.5 million in the same period in 2013. The decrease of cash from financing of $3.9 million was primarily driven by the net decrease of cash from related party loans of $5 million offset by repayments of short term loans of $1.5 million.

Cash Flows: Six months ended June 30, 2014 and 2013

Cash used in operating activities was $2.2 million in the six-month period ended June 30, 2014, compared to $0.1 million generated by operating activities in the same period of 2013. Cash used by operating activities decreased by $2.7 million year-over-year. (1) Cash used in operations prior to changes in non-cash working capital is $0.8 million higher than the prior period, and (2) cash generated from non-cash working capital was $2.2 million lower in the current period compared to the same period in 2013. (3) Lastly cash from discontinued operations in 2013 used an additional $0.3 million in cash.  The $2.2 million lower cash generated from non-cash working capital in the three months ended June 30, 2014, compared to the comparable 2013 period, was due to changes in (1) the decrease in cash generated from accounts receivable of $4.8 million, (2) the decrease in cash generated by inventory of $2.5 million, and (3) the decrease in cash from taxes recoverable of $0.2 million. These were offset by (4) the decrease in the use of cash for accounts payable and interest payable of $4.8 million, and (5) the decrease in cash use for prepaid expenses of $0.5 million.

Cash used by investing activities was $0.0 million during the first half of 2014, compared to cash used by investing activities of $0.0 million in the same period in 2013.  

Cash used in financing activities was $0.0 million in the six months ended June 30, 2014, compared to cash from financing of $2.6 million in the same period in 2013.The decrease of cash from financing of $2.6 million was primarily driven by the net decrease of cash from related party loans of $4.6 million offset by net reductions in repayments of short term loans of $2.0 million.

Capital Structure

Outstanding Share Data as at August 12, 2014.

 
Common Shares Issued   33,462,804
Reserved For Issuance   
Convertible debenture   2,386,407
Warrants   1,154,494
Stock Options   2,719,029
Total Reserved For Issuance   6,259,930
Fully Diluted Shares   39,722,734


About GLG Life Tech Corporation

GLG Life Tech Corporation is a global leader in the supply of high-purity stevia extracts, an all-natural zero-calorie sweetener used in food and beverages. GLG's vertically integrated operations cover each step in the stevia supply chain including Non-GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest, proprietary extraction and refining, marketing and distribution of the finished product. GLG has similarly positioned itself, through parallel vertically integrated luo han guo operations, to be a leader in the supply of high-purity luo han guo extracts. Additionally, to further meet the varied needs of the food and beverage industry, GLG has launched its Naturals+ product line, enabling it to supply a host of complementary ingredients reliably sourced through its R8 supplier network in China. For further information, please visit www.glglifetech.com.

Forward-looking statements: This press release contains certain information that may constitute "forward-looking statements" and "forward looking information" (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, statements evaluating the market, statements regarding the potential demand for stevia and other products and general economic conditions and discussions of future-oriented costs and expenditures. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

While the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors include amongst others the effects of general economic conditions, consumer demand for our products and new orders from our customers and distributors, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations, industry supply levels, competitive pricing pressures and misjudgments in the course of 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 for the financial year ended December 31, 2013. In light of these factors, the forward-looking events discussed in this press release might not occur.

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

CONTACT: Simon Springett, Investor Relations Phone: +1 (604) 669-2602 ext. 104 Fax: +1 (604) 662-8858 Email: ir@glglifetech.com



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Source: GLG Life Tech


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