TORONTO, Dec. 28, 2011 /CNW/ - Asia Bio-Chem Group Corp. (TSX: ABC)
("Asia Bio-Chem") is pleased to announce that it has successfully
secured 100 million RMB ($16 million) in new operating lines of credit
to finance working capital including purchases of corn for 2012.
The credit facilities are provided by the Daqing Government (30mm RMB),
Heilongjinag Provincial Bank (20mm RMB) and by the Harbin Bank (50mm
RMB). The credit facilities will bear interest at floating rates set by
the lenders at the time of draw down. The facilities will be secured
against raw material, products or assets of the Company's Daqing Plant
or Changtu Plant.
"These new lines of credit will allow our Company to draw when necessary
to purchase corn and finance operations going forward." said Zhiping
Wang, President and CEO.
About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the
People's Republic of China ("PRC"), is in the business of processing
corn into cornstarch, corn germ, gluten, and fiber for sale into the
domestic Chinese market. From its plants in Liaoning and Heilongjiang
Province, the Company has a total processing capacity of 900,000 tonnes
of corn per year.
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.