Troubled Vancouver sweetener-maker GLG Life Tech Corp. (TSX:GLG) is pinning hopes of a revival on a strategic collaboration with China National Cereals, Oils and Foodstuff Corp. (CNCOFC).
Trading of the company's shares remains halted following a class action lawsuit over allegations of corporate misrepresentations and "unsupportable revenue projections."
The company announced May 15 that it has developed a strategic collaboration with CNCOFC.
"The two companies have been discussing a collaboration in stevia for the past number of months with a focus on developing products that will cater to promoting healthier food and beverage products and improving the social welfare of the Chinese people," GLG noted in a release.
The collaboration will focus on three areas:
- healthier food and beverages;
- technology; and
- investments.
China has one of the largest populations of diabetes sufferers in the world, with 90 million people diagnosed with the disease, according to GLG.
GLG's products sweeten food without using sugar, which is advantageous in diabetes.
The TSX halted GLG's shares at $0.66 last May because GLG executives missed the deadline to file financial statements. That's a dramatic drop from 2008, when GLG's share price touched what would have been $20, when adjusted for a 2009 stock split. In January, 2011, the shares were trading at $12.
The company announced last month that it would also be late in filing its 2012 year-end financial statements.
