19th Aug 2010 07:00
Press Release |
19 August 2010 |
Sorbic International plc
("Sorbic" or the "Company")
Acquisition of Land in Inner Mongolia
Loan of RMB 24.4 million
Sorbic International plc (AIM:SORB), the third largest sorbates producer in China, is pleased to announce that the Company has now completed the acquisition of the 267,817 square metres of land in Ulanqab city, Inner Mongolia, the site of its new facility. This new facility will increase the Company's capacity from 7,500 to 15,000 tonnes per annum, and construction began in April 2010. The land has been acquired by Inner Mongolia Golden Van Science and Technique Co., Ltd ("IMGVST"), a wholly owned subsidiary of Linyi Van Science and Technique Co., Ltd ("LVST").
To fund the land purchase and set up IMGVST, Mr Wang Yanting, Chief Executive Officer and founder of LVST, the trading subsidiary of Sorbic, has lent LVST a further RMB 24.4 million (approx £2.3 million). The loan is at 0% interest, and has no fixed date for repayment.
Mr Wang Yanting is a related party for the purposes of Rule 13 of the AIM Rules for Companies. The Independent Directors (being all directors excluding Mr Wang Yanting), having consulted with the Group's nominated adviser finnCap, consider that the proposed transaction is fair and reasonable insofar as the Company's shareholders are concerned.
John McLean, Chairman of Sorbic International, commented: "Acquiring the land in Inner Mongolia is a significant step forward for the Company, and we are excited about the opportunities for increasing our production levels once the new facility is completed."
- 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 |
www.abchurch-group.com |
Notes to Editors:
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.
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