Sorbic International PLC Update on suspension (4177M)

TIDMSORB

RNS Number : 4177M

Sorbic International PLC

07 May 2015

 
 
    Press Release     7 May 2015 
 

Sorbic International plc

("Sorbic" or the "Company")

Update on suspension

Further to the announcement of 22 April 2015, Mr Wang Yan Ting ("Mr. Wang"), the Company's 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 Wang's role as Legal Representative in China has been terminated and he has been replaced by Mr.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.

Since being replaced as the Company's Legal Representative for LVST in China and from the LVST board, Mr. Wang has declined to hand-over the Company's corporate seals (chops) and business licences, which he removed from the premises before he was dismissed. The local police were contacted, but deemed Mr. Wang's non-cooperation as a commercial matter and were therefore unwilling to assist.

As a result of Mr. Wang's non-cooperation, the bank accounts and the day-to-day operations of the Company still remain under the control of Mr. Wang. Furthermore, Mr. Wang has confirmed that he has transferred funds belonging to the Company which remain under his control and, to date, he has refused to return them. At 31 March 2015, management accounts showed total cash balances of approximately RMB 72 million (GBP7.7 million).

Sorbic International plc is wholly reliant on the transfer of funds from China to meet its operating costs and to repay the loan notes of approximately GBP3.75 million which, as detailed in the Company's preliminary results released in January 2015, remain outstanding and are therefore in default. As a result of the above, the financial position of Sorbic International plc is uncertain.

The Board has been informed that the Company's factory in Linyi continues to be fully operational and Mr. Wang remains in regular contact with the Company.

The Group's new LVST board is working closely with the Group's legal team in Beijing and the UK non-executive Directors, who have actively been on the ground in China in recent months addressing this issue and they will continue to return to China whenever they are needed.

The Company's shares remain suspended from trading and further updates will be made in due course.

- Ends -

 
For further information: 
Sorbic International plc               Tel: [phone] 
John McLean, Non-executive 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

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