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Convertible Loan Update

14 Jan 2011 07:00

RNS Number : 4478Z
Sorbic International PLC
14 January 2011
 



 

Press Release

14 January 2011

 

Sorbic International plc

 

("Sorbic" or the "Company")

 

Convertible Loan Update

 

Further to the announcement of 16 December 2010, two directors of the Company visited the offices of Hermes Holdings Ltd ("Hermes") in Seoul, Republic of Korea on 12 January 2011. Hermes remains committed to the agreed amount and now expects the regulatory approval process to be completed during Q2 2011.

 

The first stage of that process will be the submission of an independent valuation report on the Company to the regulatory authorities. This is targeted to complete no later than the end of Q1 2011. As a consequence of the approval process, the £1.6 million due from Hermes is now anticipated to be received towards the end of Q2 2011. This anticipated delay, in the absence of alternative funding, would delay completion of the new factory. Accordingly, the Company will consider its options to facilitate completion of the factory which will include looking to secure alternative/bridge funding.

 

At 30 September 2010 the Company had net assets of approximately £14 million of which £5.7 million was cash. The Company remains profitable and last year achieved revenues of £12 million at its existing factory in Linyi City, PRC.

 

The Company will continue to work with Hermes to resolve this issue and will update shareholders in due course.

 

- Ends -

 

For further information:

Sorbic International plc

Tel: +44 (0)7768 031 454

John McLean, Chairman

www.sorbicinternational.com

FinnCap

Geoff Nash / Ed Frisby / Simon Starr (broking)

Tel: +44 (0) 20 7600 1658

 

Media enquiries:

Abchurch Communications

Joanne Shears / Mark Dixon

Tel: +44 (0)20 7398 7709

joanne.shears@abchurch-group.com

www.abchurch-group.com

 

 

Notes to Editors: www.sorbicinternational.com

 

About Chahar Industrial Park

Chahar Industrial Park is located in Ulanqab City, Inner Mongolia, in the north of the Peoples Republic of China ("PRC") and is the traffic hub that links North China with its neighbour, Mongolia and the main land route for international trade from China to Mongolia, Russia and Europe. Ulanqab City has a total land area of 54.5 thousand square kilometres and a population of 2.73 million people and is a one hour to drive from Hohhot Baita Airport, which lies 130 kilometers east of Hohhot. Beijing is 300 kilometers (3 hour drive) to the south and Tianjin port is 400 kilometers away.

 

About Sorbic International plc

Sorbic International's principal activity is the production and sale of the food preservatives Sorbic Acid and Potassium Sorbate from its base in Linyi City, Shandong Province, Peoples Republic of China. Approximately half of Sorbic International's production is sold to overseas markets, across 46 countries and half into the Chinese domestic market.

 

Sorbic Acid is a naturally occurring organic compound that is used in all kinds of foods for its anti-decomposition and anti-fungus function and also in grains, medicines, cosmetics, toothpaste, tobacco, animal feed, latex, paper-manufacturing and pesticides. Potassium Sorbate is used to inhibit moulds and yeasts in many foods, such as cheese, wine, yogurt, dried meat, baked goods, cosmetics and pharmaceuticals.

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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