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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.
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