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TSX Venture: ABC
TORONTO, April 15 /CNW/ - Asia Bio-Chem Group Corp. (TSXV: ABC) ("Asia Bio-Chem" or the "Company") today announced that it has received the first portion of its long term loan facility with Zhaoyuan County Government. As announced on March 16, 2009, a long term loan will be made available to the Company's wholly owned subsidiary, Daqing Bio in the amount of up to a maximum of RMB 100 million ($18.9 million). The first portion of this loan, in the amount of RMB 20 million ($3.8 million), has been received and will be used to assist the Company with financing its expansion activities in Daqing.
The loan will have a term of 5 years from the date of drawdown and bear interest at 1% per annum payable in advance.
The Company is also pleased to announce that the Zhaoyuan County Government will provide a guarantee as security to Daqing Industrial and Commercial Investment Company Limited ("DICICL"). As such, Daqing Bio will no longer be required to provide this guarantee in connection with the loan facility.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, 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. The Company is currently constructing a second facility in Heilongjiang Province which, upon completion, is expected to triple production capacity.
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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