Yangling, Shaanxi, China- August 25, 2020 (GLOBE NEWSWIRE) — Kiwa Bio-Tech Products Group Corp. (KWBT) (“Kiwa Bio-Tech” or “the Company”), is pleased to provide this corporate update for all shareholders.
To Kiwa’s Shareholders:
Since the beginning of calendar year 2020, Kiwa has completed 60% of its planned sales during the first half year under the impact of the COVID-19 pandemic.
Notwithstanding, since all of the sales revenue generated in this period were collected in Commercial Bank Notes, the Company faced a severe shortage of cash due to China’s foreign exchange adjustments and note discount policy. On July 22, 2020, the Company executed a loan agreement with Shaanxi Agricultural Credit Financing Guarantee Company, however, at this date we have not received any funding from this line of credit.
In response to this situation, the Board of Directors of the Company has urgently initiated a restructuring of its China business and management structure. The Company has been engaged in discussions and negotiations with various banks and Chinese investors for nearly two months. While there are no guarantees as to the success of these efforts, the Company now believes that additional bank funding will be available to the Company prior to September 30, 2020 and that certain Chinese investors will fund the purchase of new shares of common stock in the mid-September time frame.
In tandem with the restructuring of its Chinese operations, the Board will also oversee the restructuring of its’ US operations. The Company currently plans to release its first, second, and third quarter quarterly reports at the same time.
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’s actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic, business and environment conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, the execution of its ten-year growth plan, the foreign exchange risk amid the unexpected announcements by the PRC government and various other factors beyond the Company’s control. Kiwa Bio-Tech Products Group Corp. 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.
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