Kiwa Bio-Tech announces 100 Mn loan program to boost agriculture production in China
The Loan program is designed for farmers to purchase Kiwa’s fertilizer products and technical services.
Kiwa Bio-Tech Products Group Corp. (KWBT) (“Kiwa Bio-Tech” or “the Company”), an emerging agricultural company that develops, manufactures and markets bio-fertilizers in the multi-billion China agriculture and aquaculture markets, and develops smart soil remediation technology for global agriculture markets, recently announced that after 6 months of negotiation Shaanxi Branch of Postal Savings Bank of China (“PSBC”) will provide up to a 100 million RMB (approximately $14 million USD) loan (the “Loan”) to support and boost agriculture economy in China. The Loan program is specially designed by PSBC for Kiwa and issued by Shaanxi Agricultural Credit Financing Guarantee Co., Ltd. (“SACFG”) for farmers to purchase Kiwa’s fertilizer products and technical services.
Wade Li, CEO of Kiwa Bio-Tech commented, “SACFG is a guarantee company of the Shaanxi Provincial Government. SACFG highly recognizes the Company’s business development in Shaanxi and will support the implementation of Company’s Trinity marketing strategy in the province. Providing loans to Kiwa’s customers will greatly reduce the proportion of accounts receivable in sales of fertilizer, optimize operation structure, and improve financial management capabilities.”
Man Yun, CFO of Kiwa Bio-Tech commented, “It is the first time that we have utilized bank lending facilities in nearly 20 years. This credit facility will enhance our cash flow and enable us to accelerate production and sales. At present, we have several convertible notes in the United States of America which mature in the current fiscal year and we have started negotiations with these convertible notes holders regarding repayment. We are striving to reach agreement with these creditors and repay these convertible notes in cash by the end of April 2020.”