Kiwa Bio-Tech Products Group Corp (fka KWBT)

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KIWA BIO-TECH PRODUCTS GROUP CORP. August 2020 UPDATE

Yangling, Shaanxi, China, Aug. 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.

https://www.globenewswire.com/news-release/2020/08/25/2083072/0/en/KIWA-BIO-TECH-PRODUCTS-GROUP-CORP-August-2020-UPDATE.html