Sorbic International PLC Update on suspension (4177M)
07 Maggio 2015 - 8:01AM
UK Regulatory
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Representative in China has been terminated and he has been
replaced by Mr.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: +44 (0) 7768 031 454
John McLean, Non-executive Chairman www.sorbicinternational.com
finnCap (Nomad)
Geoff Nash / Kate Bannatyne Tel: +44 (0) 20 7220 0500
Hybridan LLP (Broker)
Claire Louise Noyce Tel: +44 (0) 20 3713 4581
Media enquiries:
Abchurch Communications
Henry Harrison-Topham / Canace Wong Tel: +44 (0)20 7398 7714
canace.wong@abchurch-group.com 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
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