23 Jul 2008 07:00
23 July 2008
Albany Capital Plc
('Albany' or 'the Company')
New Investment
Albany (ticker: ALB) is pleased to announce that it has today completed an investment of £2 million in Honour Field International Ltd ("Honour Field").
Honour Field is a holding company registered in the BVI and its sole interest is its wholly owned shareholding in Linyi Van Science and Technique Co. Ltd ("LVST").
Information on LVST
LVST is a manufacturer of food preservatives, namely Potassium Sorbate and Sorbic Acid, located in Linyi City, Shandong Province, Peoples Republic of China. LVST was established in July 2001 and is currently ranked as the third largest producer of Sorbic Acid and Potassium Sorbates in China, with annual production in excess of 11,000 tonnes. For the financial year ended 31 December 2007, LVST reported total sales of RMB179 million (approximately £12.6 million) and a net profit of RMB40 million (approximately £2.8 million).
Purpose of Investment
Albany Capital's investment today of £2 million is part of a £3 million placement of Convertible loan Notes in Honour Field. Proceeds from the placing will assist in LVST's development ahead of a planned listing of Honour Field on an established exchange.
Terms of Investment
Albany Capital has subscribed for £2 million of Convertible Loan Notes in Honour Field. The convertible loan shall be converted into New Shares in Honour Field at the Conversion Price immediately upon a Liquidity Event. The Liquidity Event is defined as a means of initial public offering, a reverse takeover on an established exchange and/or merger and acquisition exercise of Honour Field. The Conversion Price per share shall be an amount equal to 60% of the Transaction Price. The Transaction Price is defined as the market value per share or consideration per share of Honour Field as defined by the Liquidity Event.
John McLean, Chairman of Albany Capital Plc, said:
"Our investment in Honour Field fits ideally with Albany's successful investment strategy which focuses on growing companies with high quality local management teams based in the Peoples Republic of China. Honour Field certainly meets all of those criteria and we look forward to updating shareholders with progress later in the year."
www.albanycapital.co.uk
Enquiries:
Albany Capital Plc
John McLean, Chairman Tel: +44 (0)20 3178 4506
WH Ireland Limited
James Joyce Tel: +44 (0) 20 7220 1666
Sarang Shah
Hansard Group
Adam Reynolds Tel: +44 (0) 20 7245 1100
John Bick