Sorbic International PLC Board changes and update on fund's transfer (9510K)

TIDMSORB

RNS Number : 9510K

Sorbic International PLC

22 April 2015

 
 
    Press Release     22 April 2015 
 

Sorbic International plc

("Sorbic" or the "Company")

Board changes and update on fund's transfer

Shareholders will be aware from the Company's earlier announcements that the Sorbic Board has been frustrated by its inability to move money out of China both to repay the outstanding loan stock of approximately GBP3.75 million (including accrued interest and redemption premium) and cover Sorbic's plc expenses. In addition, the Board has been unable to adequately progress resolution of the compensation due regarding Inner Mongolia and the proposed expansion of the Company's operations in China.

To remedy this position, the two UK-based directors have sought advice from the Company's lawyers and advisers in China and announce today that Mr Wang Yan Ting, the Group and Company CEO, has been removed from office, both at the Board (plc) level and in respect of the operating subsidiary ("LVST") in China. Furthermore, Mr Wang Yan Ting's role as Legal Representative in China has been terminated and he has been replaced by Mr Cai Lun, the managing partner of Guolan, a Beijing law firm. As part of the change, the remaining two directors of LVST have also been replaced.

The new board of LVST will consist of the new Legal Representative, together with Jay Boyle and Matt Winter, each of whom are directors of eCFO, the Company's financial advisers in China and with whom the Board has been working since last year. Day-to-day management of the China operation will be conducted by the new Board and the senior managers within LVST.

Following these changes, the new team will focus on releasing the funds held within China (approximately RMB 72 million (GBP7.8 million) as of 31st March 2015) and improving the financial performance of LVST's operations in China.

The above changes represent a first step in returning the Group to a more centralised corporate governance structure and the Board will provide further details as appropriate.

- Ends -

 
For further information: 
Sorbic International plc    Tel: [phone] 
John McLean, Chairman     www.sorbicinternational.com 
 
 
finnCap (Nomad) 
Geoff Nash / Kate Bannatyne  Tel: [phone] 
 
 
Hybridan LLP (Broker) 
Claire Louise Noyce    Tel: [phone] 
 

Media enquiries:

 
Abchurch Communications 
Henry Harrison-Topham / Canace Wong  Tel: [phone] 
[e-mail]         www.abchurch-group.com 
 

Notes to Editors: www.sorbicinternational.com

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 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.

Sorbic International operates through its wholly owned subsidiary Linyi Van Science and Technique Co. Ltd ("LVST").

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCSELSMEFISEFL