LONDON (Alliance News) - Sorbic International PLC Tuesday said that its nominated adviser finnCap Ltd has resigned with immediate effect, giving the company a month to appoint a new NOMAD or have its listing on AIM cancelled.
The news is the latest blow to the company. It said last month that its former Chief Executive Wang Yan Ting is refusing to hand over the corporate seals and business licenses of its Chinese operating subsidiary, and he is also refusing to handover about GBP7.7 million in cash that Sorbic claims belongs to it, meaning its financial position remains uncertain.
Sorbic in April removed Wang as group CEO and as CEO of its Chinese subsidary, Linyi Van Science and Technique, because it was still frustrated by its inability to move money out of China, a move that Wang was blocking. It wanted the money to repay outstanding loan stock of about GBP3.75 million and to cover its own costs. It also terminated Wang's role as its legal representative in China, replacing him with a Chinese lawyer, and said it would focus on releasing the funds held within China, but has so far failed to do so.
Sorbic's shares were suspended in early May at the request of the company pending clarification of its financial position.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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