Aquatic Foods Group PLC Update on accounts publication and suspension (5058A)

TIDMAFG

RNS Number : 5058A

Aquatic Foods Group PLC

28 December 2017

 
 Press Release   28 December 2017 
 

Aquatic Foods Group Plc

("Aquatic Foods" or "AFG" or the "Group" or the "Company")

Update on accounts publication and suspension

The Directors of Aquatic Foods Group Plc (AIM: AFG), a leading Chinese marine foods and seafood processor and producer supplying to export and local markets, are disappointed to announce that the Company does not now expect to be in a position to publish its audited full year accounts to 31 December 2016 ("2016 Accounts") or its interim accounts to 30 June 2017 ("2017 Interims") by 29 December 2017.

Given that as of 29 December 2017 trading in the Company's shares will have been suspended for a period of six months, trading in the Company's shares on AIM is expected to be cancelled at 7.00am on 29 December 2017 in accordance with Rule 41 of the AIM Rules for Companies.

Since the Company's last update, the Board has continued to liaise with its PRC based Directors in order to establish a framework for ensuring that ongoing UK expenses can be met through transfers from the Company's PRC based operating subsidiaries. Funds were received earlier in December 2017 but the Company has yet to receive additional transfers that would be necessary to ensure the timely payment of outstanding expenses due to, among others, the Company's auditors, Directors and Nominated Adviser. Accordingly, the Company has been unable to complete the required additional audit work in the required timeframe.

Notwithstanding the cancellation of trading in the Company's shares, the Directors will work to ensure that further funds are received into the UK from the Group's operating subsidiaries to meet these liabilities and will consider appropriate courses of action to realise value for shareholders and creditors.

Further updates will be provided to shareholders as appropriate.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

- ENDS -

For further information:

 
 Aquatic Foods Group Plc            Via Abchurch 
 Dr. Wang Shaodong, Non-Executive 
  Chairman 
 
 
 SP Angel Corporate Finance      Tel: [phone] 
  LLP                                            0470 
  Nominated Adviser and Broker      www.spangel.co.uk 
 Stuart Gledhill / Robert 
  Wooldridge 
 

Media enquiries:

 
 Abchurch                              Tel: [phone] 
                                                       7700 
 Julian Bosdet / Jenny Lee           www.abchurch-group.com 
  / Alejandra Campuzano 
                             [e-mail] 
 

Notes to Editors:

Aquatic Foods Group is a leading marine foods and seafood processor and supplier based in China. The Group initially built its business through focusing on the export market (principally Japan under the "Kanwa Foods" brand), and subsequently established the "Zhenhaitang" brand in 2007 in mainland China to take advantage of the growing market driven by growing disposable income within the Chinese middle-classes and a more health conscious consumer base.

The Group benefits from excellent food safety procedures developed over many years which have helped the Group to build a strong track record of supplying its products into overseas markets. This track record has enhanced the perception of the quality and reliability of the Group's products in China and has allowed the Group to expand significantly into local markets as demand for seafood products has increased. In a market that has seen regular public health scares relating to food safety, the Group considers that its adherence to these standards to be a key strength. The Group has obtained the following key standards:

   -    ISO 9001 Quality Management System certification 
   -    HACCP Food Safety System certification 
   -    BRC certification; and 
   -    Marine Stewardship Council certification 

Aquatic Foods works with a network of distributors to effectively market its products in China. The Group has continued to grow its distributor relationships and now distributes its products in 16 provinces, municipalities and autonomous regions in China through 50 regional distributors. These distributors in turn sell the Group's products to sub-distributors and retailers, including supermarket chains and hypermarkets.

Further information can be viewed at www.aquatic-foods.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 28, 2017 11:16 ET (16:16 GMT)