Asia Bio-Chem Group Corp. Announces First Quarter 2014 Financial Results

During the first quarter the Company refinanced $32.3 million in loans, which resulted in the release $1.8 million in restricted cash.  This release together with $4.6 million funds from operations and $3.3 million increase in borrowings resulted in an increase in unrestricted cash position to $11.1 million at March 31, 2014 from $1.7 million at December 31, 2013.  As at March 31, 2014, total debt was $218.2 million.

Update on acquisition of Tieling Wanshunda Starch Company Ltd
On January 27, 2014, the Company entered into an amending agreement to the Tieling Sale and Purchase Agreement dated December 22, 2012 (the "Amending Agreement"). Under the terms of this Amending Agreement, the Company acquired the holding company of Tieling (Cheerful Dragon Asia Limited) from its sole owner, Kon Hon Wong (the "Seller").  Further, under the Amending Agreement, the Seller agreed to forgive the RMB 30 million Note in respect of the purchase price. The debt forgiveness is recorded as gain in the three months ended March 31, 2014.

Update on Change in Majority Shareholders of Asia Bio-Chem
Further to the press release dated March 7, 2014, Asia Bio Chem has been advised by it's controlling shareholders that a letter of intent ("LOI") has been completed which contemplates  the sale of their shares of Asia Bio-Chem to a subsidiary of the Chinese state-owned Beidahuang State Farm Group General Corp.(" Beidahuang").  Beidahuang is currently completing its due diligence and operations audit of Company.  With the successful completion of this work, the major shareholders of Asia Bio Chem will finalize the terms of the transaction with Beidahuang.

Conference Call
Asia Bio-Chem will be hosting a conference call to discuss the first quarter results at 9:00 a.m. EST on Friday, May 23, 2014. The details are as follows:

About Asia Bio-Chem Group Corp.
Asia Bio-Chem Group, through its wholly-owned subsidiaries in the People's Republic of China, is in the business of processing corn into cornstarch, germ and gluten for sale into the domestic Chinese market.  From its plants in Liaoning and Heilongjiang Province, the Company has a total processing capacity of 1.5 million 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.

SOURCE Asia Bio-Chem Group Corp.