Stevia extract supplier issued cease trade order
May 3, 2012
by Jeff Gelski
VANCOUVER, B.C. — The British Columbia Securities Commission has imposed a full cease trade order on GLG Life Tech Corp., a global supplier of stevia extracts, the Vancouver-based company announced May 3.
The cease trade order, which involves trading in the securities of a company, resulted from GLG Life Tech’s delay in filing its annual financial statements, its annual information form (and related Form 40-F in the United States) and certifications from the chief executive officer and chief financial officer for the year ended Dec. 31, 2011.
GLG Life Tech on March 30 said its filings would be delayed because the company was working to obtain further audit evidence, primarily from third parties, as required by its auditors.
On April 30, GLG Life Tech said the company’s audit committee had engaged KPMG LLP, an audit, tax and advisory services firm, to assist with third-party evidence. GLG Life Tech’s auditors said they had not uncovered any wrongdoing by GLG Life Tech.
Also on April 30, the company said it had arranged an interim unsecured credit facility of C$6.4 million ($6.5 million) from Luke Zhang, its chairman and chief executive officer. The money was to be advanced to the company and its subsidiaries in China. The facility will be for a three-year term and will bear interest at a rate ranging from 13% to 14.5% per annum.
GLG Life Tech last reported financial results on Nov. 14, 2011, when it gave third-quarter results for the period ended Sept. 30, 2011.
Third-quarter revenue in 2011 was C$1.7 million ($1.7 million), which marked a 92% decrease from C$21 million in the previous year’s third quarter. The company had a net loss of C$24.7 million in the 2011 third quarter, which compared with net income of C$1.8 million in the previous year’s third quarter.
For the nine months ended Sept. 30, 2011, GLF Life Tech had revenue of C$24.4 million, a 39% decrease from C$39.6 million in the same time period of the previous year, and a net loss of C$42.9 million, which compared with net income of $103,000 in the same time period of the previous year.
On Sept. 30, 2011, GLG Life Tech had working capital of C$36.8 million, total assets of C$285 million and total liabilities of C$105.5 million.