pcNewsWire – Kiwa Bio-Tech Products Group Corporation (OTCQB: KWBT) has secured convertible note financing in the amount of approximately US $4.5 million or RMB 30 million from Junwei Zheng.
Kiwa Announces $4,500,000 Financing
ONTARIO, CA–(Marketwired – May 11, 2017) – Kiwa Bio-Tech Products Group Corporation (OTCQB: KWBT) (“Kiwa” or the “Company”), a Company focused on eco-friendly bio-based fertilizers promoting soil health, is pleased to announce that the company has secured note financing in the amount of approximately US$ 4.5 million (RMB 30,000,000).
Under terms of the financing, the note has a two-year maturity and accrues interest at a rate of 15% per annum. The investor has the right to convert the principal balance and accrued interest into Kiwa common stock at a price of $3.50 per share, which represents an approximately 25% premium over our Kiwa’s current stock price.
“We are extremely pleased with this ‘above the market financing’ for Kiwa. This financing will support Kiwa’s business operations and expansion in China, which includes the manufacturing and distribution of its bio-fertilizers and distribution of fresh produce grown by its fertilizer clients,” stated Kiwa’s CEO Yvonne Wang.
Additionally, the Agreement signed with Yantai Fruit Company on April 27, 2017, indicates that Kiwa will sell 50,000 tons of fertilizer products. Kiwa Bio-Tech Products Group Corp. had a record year in terms of revenues and net income in 2016. In its fiscal year ended December 31, 2016, Kiwa reported revenue of $9,617,845 and net income of $1,193,359.
“We expect this year’s operating results will surpass our 2016 results. In 2017 we are expanding our market penetration and sales throughout China and other Asian countries,” added Wang.
About Kiwa Bio-Tech Products Group Corporation
Kiwa Bio-Tech Products Group Corporation develops, manufactures, distributes, and markets innovative, cost-effective and environmentally safe bio-technological products for agricultural and environmental conservation. The Company’s products are designed to enhance the quality of human life by increasing the value, quality and productivity of crops and decreasing the negative environmental impact of chemicals and other wastes.
Kiwa is dedicated to eco-agricultural development and environmental control by developing, producing, and selling bio-technological products with high technology, low-cost, and high productivity to satisfy the growing market demand. Kiwa’s development is creating a standardized and ecologically safe agricultural industry chain platform. The Company’s development effort is based in China, and has gradually expanded to the international market.
Kiwa uses new bio-technological skills at its core, with organic, ecologically sound, and “green” practices as its theme. The Company strives for customer satisfaction and continued development. Kiwa is dedicated to making safe food, further developing eco-agriculture and upholding a responsibility of contributing to China’s agricultural safety, food safety, and a healthy lifestyle.
For more information on Kiwa and its products, please refer to the Company’s website at www.kiwabiotech.com or the Company filings with the United States Securities and Exchange Commission, available for free at www.sec.gov
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described by the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company’s reports filed with the U.S. Securities and Exchange Commission. The forward-looking information provided herein represents the Company’s estimates as of the date of the press release, and subsequent events and developments may cause the Company’s estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company’s estimates of its future financial performance as of any date subsequent to the date of this press release.
Kiwa Bio-Tech Products Group Corporation