Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Quickpicks
Add shares to your
quickpicks to
display them here!

Application to PLUS Markets

15th Apr 2011 07:00

RNS Number : 9657E
Sorbic International PLC
15 April 2011
 



 

 

Press Release

 15 April 2011

 

 

Sorbic International plc

 

("Sorbic" or the "Company")

 

Application to PLUS Markets for equity and convertible debt

 

The Directors of Sorbic (AIM:SORB), the third largest sorbates producer in China, are pleased to announce that the Company has applied for an introduction to the PLUS quoted market ("PLUS markets") for both the Company's ordinary shares and £2.4 million of the Company's convertible loan notes, which comprises all of the issued A Loan Notes and B Loan Notes (the "Loan Notes"). There are 1,562 A Notes in issue and 876 B Notes in issue giving 2,438 Loan Notes in aggregate.

 

To accommodate the fundraise of 25 February 2011, certain of the A Loan Notes will, in due course, be surrendered to be replaced with an identical number of B Loan Notes.

 

It is intended that dealing will commence on PLUS markets on 5 May 2011. The Company is classified under "Food Producers".

 

The Company has applied to admit to PLUS markets its entire issued ordinary share capital and the £2.4 million of the A and B Loan Notes of GBP 1,000 each. The Company has 38,563,499 ordinary shares of 6 pence each ("Ordinary Shares") in issue. The A and B Loan Notes pay a coupon of 10.0% and may be converted into equity at a price of 26 pence per ordinary share, if not converted, the A and B Loan Notes are redeemable on 26 February 2013. The terms of the A Notes have been amended to be identical to the terms of the B Notes. Full details of the terms of the Loan Notes can be found on the Company's website at http://www.sorbicinternational.com/investor-info/aim-rule.php.

 

The ticker for the A loan Notes is SA.P. The ticker for the B Loan Notes is SB.P.

 

Whilst the A and B Notes have identical terms, they will trade as two separate lines of stock.

 

The Ordinary Shares will continue to trade on AIM (as well as on PLUS markets).

 

The Loan Notes to be admitted to PLUS markets exclude the £1.6 million of A Loan Notes that are due to be subscribed for by Hermes Holdings Ltd ("Hermes"), based in Seoul. Hermes has yet to pay the Company and accordingly has not been issued with any A Loan Notes.

 

Operations

 

The Company, based in the Chinese province of Shandong in the People's Republic of China, a region with a population of circa 94 million, is involved in the production and sale of the food preservative sorbates.

 

Sorbic operates from its 33,000 m² production facility in Linyi City, (population 10 million), Shandong province. The Company is the third largest sorbates producer in China, with a current production capacity of 7,500 tonnes per annum of sorbate, 46% of which is exported to the European and North American markets.

 

Construction is ongoing on the Company's new production facility in Ulanqab City, Inner Mongolia, work on which commenced in April 2010. The new site in Ulanqab City will double Sorbic's existing manufacturing capacity. The factory building is largely complete and construction remains on track. The project is expected to be completed by late 2011.

 

Sorbic operates within a growing industry with global demand for sorbates being driven by the increase in the world's population and rising demand for processed food. As Sodium Benzoate, the main alternative to the Company's product is being phased out in the US, Europe and Japan, the Directors believe the market opportunity for Sorbic is significant.

 

The Company listed on AIM on 30 September 2008.

 

- Ends -

 

 

For further information:

Sorbic International plc

Tel: +44 (0)7768 031 454

John McLean, Chairman

www.sorbicinternational.com

PLUS Corporate Adviser, Nomad and Broker

finnCap Limited

Geoff Nash / Ben Thompson (Corporate Finance)

Simon Starr (Corporate broking)

Tel: +44 (0) 20 7600 1658

 

Media enquiries:

Abchurch Communications

Joanne Shears / Mark Dixon

Tel: +44 (0)20 7398 7709

[email protected]

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, 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.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCMMGMDNDDGMZM

Related Shares:

Sorbic International
FTSE 100 Latest
Value8,275.66
Change0.00