Chai-Na-Ta Corp. announces HSBC China Fund Limited — formerly The Wardley China Fund Limited — has elected to convert its loan into shares

Business Wire,  Feb 13, 1996  

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LANGLEY, British Columbia--(BUSINESS WIRE)--Feb. 13, 1996-- CHAI-NA-TA CORP.(NASDAQ:CCCFF;TSE:CC) is pleased to announce that the HSBC China Fund Limited (formerly The Wardley China Fund Limited)(the "Fund") has elected to convert US$1,500,000 of its US$6,089,670 loan to Chai-Na-Ta (Asia) Ltd. into shares of Chai-Na-Ta Corp.

As previously announced at the time of the financing in September, 1993, the Fund was given the right to convert all or a portion of its loan into shares of Chai-Na-Ta (Asia) Ltd., North American Ginseng Enterprises Ltd., or Chai-Na-Ta Corp.

"The conversion by the Fund of part of its investment in our companies indicates the confidence that they have in our management and the companies' performance. We had been discussing with the Fund the concept of their sponsorship of a listing for Chai-Na-Ta (Asia) Ltd. or North American Ginseng Enterprises Ltd. on the Hong Kong Stock Exchange, but the Fund felt that these companies do not meet the listing requirements at this time. We have been saying for quite some time that our stock price, based on a reasonable multiple of earnings, is very low; we believe that the Fund's conversion underscores that fact," said Gerry Gill, President and Chief Executive Officer of Chai-Na-Ta Corp.

Chai-Na-Ta Corp., through its subsidiaries, is the world leader in the cultivation of ginseng root and a worldwide marketer of ginseng value-added products.

CONTACT: CHAI-NA-TA CORP.

Gerry Gill or Russell Vatcher, (800) 406-7668

or (604) 533-8883

or

Barretto Pacific Corp. (Investor Relations)

Landon Barretto/Adele Lang, (206) 583-8370

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