Chai-Na-Ta Corp. Correction to News Release Dated March 15, 2001.Business Editors LANGLEY Lang·ley , Mount A peak, 4,227.9 m (14,026 ft) high, in the Sierra Nevada of southern California. lang·ley n. pl. , B.C.--(BUSINESS WIRE)--March 20, 2001 Chai-Na-Ta Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CCCFF)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CC.) today reported financial results for its fiscal 13-month period ended December 31, 2000. This news release is a correction to the news release of the Company dated March 15, 2001 announcing financial results for the same period. In its March 15, 2001 news release, the Company reported financial results for the 13-month period ended December 31, 2000. These financial results were derived from financial statements that were approved by the Audit Committee and Board of Directors of Chai-Na-Ta Corp. and Deloitte & Touche LLP LLP - Lower Layer Protocol . After the release of the March 15, 2001 news release and following the close of trading on Friday, March 16, 2001, Deloitte & Touche informed the Company that these financial statements required amendment. Prior to the commencement of trading on Monday, March 19, 2001, Chai-Na-Ta Corp. contacted The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. to request a halt in trading of its securities until these financial statement issues could be discussed. The Company issued a news release in this regard during the course of the day on March 19, 2001. The amendment relates to the recording of indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. to the parent company, or its affiliate, at an amount that approximates fair value at the date the terms of indebtedness was agreed. The consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge have been amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. to reduce the liability per the consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. by $2,500,000 and increased reported net income by $2,500,000. This adjustment has been discussed and agreed with Deloitte & Touche, which has confirmed to the Company that it is not aware of any other audit issues that remain to be resolved. The Company's Board of Directors has reviewed and approved the amended consolidated financial statements. During 2000, the Company's fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. was changed to December 31 from November 30. Consequently, fiscal 2000 numbers represent a 13-month period from December 1, 1999 to December 31, 2000 and are compared with results from the prior 12-month period. Fiscal 2000 fourth-quarter results reflect a four-month period compared to three months in the prior fiscal year. In fiscal 2000, revenue decreased to $12.2 million from $16.2 million in the year ended November 30, 1999. Net earnings in fiscal 2000 were $6.8 million ($0.65 per basic share) compared to a net loss of $18.2 million ($4.09 per basic share) in the prior year. Interest and financing charges of $0.2 million in fiscal 2000 compared to interest and financing charges of $3.2 million in fiscal 1999. The Company recorded a gain on debt forgiveness Forgiveness Angelica, Suor is forgiven by the Virgin Mary for ill-considered suicide. [Ital. Opera: Puccini, Suor Angelica, Westerman, 364] Bishop of Digne in fiscal 2000 of $13.9 million as a result of the financial restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan adopted in May 2000. Working capital was a surplus of $14 million at the fiscal 2000 year-end compared to a deficiency of $22.4 million at November 30, 1999. This improvement was due to debt forgiveness under the financial restructuring plan and a $5 million capital injection by Road King Infrastructure Limited. "We are pleased that Road King's involvement as Chai-Na-Ta's majority owner has brought stability to the Company and enabled us return to a sound financial position. Chai-Na-Ta's successful restructuring strengthens our industry and is positive for root prices, which stood at historical low levels but have moved higher," said William Zen Zen Important school of Buddhism that claims to transmit the experience of enlightenment achieved by the Buddha Gautama. Arising as Chan in China in the 6th century (introduced by Bodhidharma), it divided into two schools, the Southern school, which believed in sudden , Chai-Na-Ta's Chairman and Chief Executive Officer. "We are preparing for the future by enhancing the breadth and profit potential of our product line and the efficiency of our operations. Given our Company's leadership in a recovering market, we expect continuing improvement in Chai-Na-Ta's operating results," Mr. Zen said. "Our gain on debt forgiveness in 2000 will distort our bottom line financial comparisons for the next few years. However, we expect results around the breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations level in fiscal 2001 and a profitable year in 2002." In the fourth quarter of fiscal 2000, revenue declined to $0.4 million from $1.9 million in the same quarter of fiscal 1999. The net loss in the quarter ended December 31, 2000 was $3.4 million ($0.24 per share), compared to a net loss of $14.5 million ($3.21 per share) in the quarter ended November 30, 1999. During the fiscal 2000 fourth quarter, interest and financing charges were $0.1 million compared to $0.8 million in the fiscal 1999 fourth quarter. Other loss of $0.6 million in the fiscal 2000 fourth quarter compared with a loss of $13.6 million in the previous year period. Chai-Na-Ta Corp., based in Langley, British Columbia Langley, British Columbia can mean the following:
named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ginseng ginseng (jĭn`sĕng), common name for the Araliaceae, a family of tropical herbs, shrubs, and trees that are often prickly and sometimes grow as climbing forms. . The Company farms, processes and distributes North American ginseng as bulk root, and supplies processed extract powder for the manufacture of value-added ginseng-based products. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect the Company's expectations regarding future events. These forward-looking statements involve risks and uncertainties, and actual events could differ materially from those projected. Such risks and uncertainties include, but are not limited to, the success of the Company's ongoing research programs, general business conditions, and other risks as outlined in the Company's periodic filings, Annual Report, and Form 20-F.
CHAI-NA-TA CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
FOR THE THIRTEEN MONTH PERIOD ENDED DECEMBER 31, 2000
AND YEAR ENDED NOVEMBER 30, 1999
Four Three Four Three
months months months months
ended ended ended ended
December November December November
31, 2000 30, 1999 31, 2000 30, 1999
Fourth Quarter Summary Canadian $000 *US $000 Equivalents
Revenues $361 $1,888 $241 $1,264
Loss before taxes (1,893) (15,774) (1,262) (10,471)
Net loss for the period (3,355) (14,508) (2,237) (9,624)
Net loss per share
- basic (0.24) (3.21) (0.16) (2.13)
Weighted average shares
outstanding
- basic 14,264,508 4,524,053 14,264,508 4,524,053
Thirteen Year Thirteen Year
months ended months ended
ended November ended November
December 30, 1999 December 30, 1999
31, 2000 31, 2000
Annual Summary Canadian $000 *US $000 Equivalents
Revenues $12,221 $16,204 $8,150 $10,848
Income (Loss) before taxes 8,312 (21,279) 5,543 (14,244)
Net Income (Loss) for the
year 6,850 (18,152) 4,568 (12,152)
Earnings (Loss) per share
- basic 0.65 (4.09) 0.43 (2.74)
- fully diluted 0.30 (4.09) 0.20 (2.74)
Weighted average shares
outstanding
- basic 10,611,211 4,440,303 10,611,211 4,440,303
- fully diluted 22,943,190 4,440,303 22,943,190 4,440,303
*US $ Equivalents
- for the period ended December 31, 2000 conversion rate used is
1.4995 (0.6669)
- for the period ended November 30, 1999, conversion rate used is
1.4938 (0.669434)
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