22nd Feb 2012 12:30
Press Release | 22 February 2012 |
Sorbic International plc
("Sorbic" or the "Company")
Placing to raise £0.7 million
Sorbic International plc (AIM:SORB), the third largest sorbates producer in China, is pleased to announce that the Company has placed 6,491,051 new ordinary shares at a price of 11 pence per share ("Placing Shares") to raise approximately £714,000 before expenses ("the Placing").
The proceeds of the Placing will be used for general working capital purposes and to support the further development of the business. As part of the Placing, John McLean, Non-Executive Chairman of Sorbic, has subscribed for 136,500 Placing Shares. This will increase his holding to 203,167 ordinary shares, representing 0.4% of the enlarged issued share capital. John McLean is also a director of Albany Capital Group Limited ("Albany") which holds 6,810,975 ordinary shares, representing 14.9% of the enlarged issued share capital. In addition, John McLean and Albany hold £40,000 and £550,000 respectively of convertible loan stock in the Company. On a fully diluted basis, John McLean's and Albany's holdings would become 0.6% and 16.2% respectively.
Application has been made for an initial tranche of 5,513,641 of the Placing Shares to be admitted to AIM and it is expected that admission will be effective and trading will commence on Friday 24 February 2012. It is anticipated that, following the Company's Annual General Meeting, admission will be effective and trading will commence for the second tranche of 977,410 Placing Shares on 29 March 2012.
Following the Placing the Company will have 45,054,551 ordinary shares in issue.
The Board is also pleased to announce that the Company has secured an additional £1.5 million in short term bank finance in China, which will be used for the continued development of the Company's new factory in Inner Mongolia. This debt carries a coupon of 6.6% and is repayable in November 2012.
Trading for Q1 2012 has progressed to plan, and the Board looks forward to the continued development of the new factory in Ulanqab City, Inner Mongolia in spring 2012. The new facility will increase the Company's production capacity from 7,500 to 15,000 tonnes per annum when both lines (one sorbic acid line and one potassium sorbate line) are in operation.
Sorbic's Annual Report and Accounts will be posted to shareholders on 02 March 2012, and the Company's Annual General Meeting will be held at 10:30a.m. on 28 March 2012 at the offices of Stephenson Harwood, 1 Finsbury Circus, London, EC2M 7SH.
The Placing has been completed in collaboration with finnCap and Hybridan LLP.
- Ends -
For further information: | |
Sorbic International plc | Tel: +44 (0)7768 031 454 |
John McLean, Chairman | www.sorbicinternational.com |
finnCap | |
Geoff Nash / Ben Thompson Simon Starr (broking) | Tel: +44 (0) 20 7600 1658 |
Hybridan LLP | |
Claire Louise Noyce | Tel: +44 (0) 207 947 4350 |
Media enquiries:
Abchurch Communications | |
Joanne Shears / Mark Dixon | Tel: +44 (0)20 7398 7709 |
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
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Sorbic International