China Food Company PLC Trading Update (4599A)
December 23 2014 - 2:00AM
UK Regulatory
TIDMCFC
RNS Number : 4599A
China Food Company PLC
23 December 2014
Press Release 23 December 2014
China Food Company Plc
("China Food", the "Group" or the "Company")
Trading Update
China Food Company Plc (AIM: CFC), a leading Chinese
manufacturer of cooking and dipping sauces, today provides the
following update on trading.
Trading Update
The condiments business continues to operate on a
cash-break-even basis with activity levels utilising approximately
30% of capacity, with all working capital re-invested into
maintaining the day-to-day operations. The Feed business continues
to operate in line with the management team's expectations.
Loan Notes extension
As announced on 18 December 2014, the Company has now agreed
with the required majority of the loan note holders of the GBP5.7
million of Convertible Loan Notes of GBP1,000 each outstanding
("Loan Notes"), that the redemption date has been extended to
31(st) January 2015, and subject to progress on the disposal, the
loan-note holders have agreed to extend the Loan Notes for a
further three months to 30(th) April 2015. All other terms of the
Loan Notes are unchanged. As previously notified, the Company
intends to redeem the Loan Notes from the proceeds arising from the
sale of either or both of its operating businesses. Without a sale
of the operating businesses the Company will not have sufficient
funds to redeem the Loan Notes.
Proposed sales of animal feed and condiments businesses
As announced on 5 November 2014, the proposed sales of the
Company's animal feed and condiments businesses continue. The
intended sale of the animal feed business has progressed and the
Company has received a credible proposal from management to acquire
the animal feed business for net asset value, however completion of
any transaction is unable to occur until the condiments business
disposal is completed (as the land on which the animal feed
business operates is collateralised as part of the overall bank
facility with the condiments business).
Discussions on the sale of the condiments business continue with
a number of parties, one of whom, is undertaking due diligence and
has recently visited the Weifang facility. No offer has been
received at this stage and there is no certainty that any offer
will be received for the condiments business. The Company hopes to
make a further update in early 2015.
Cancellation of Trading on AIM
Pursuant to AIM Rule 41, the Company was suspended on 25 June
2014 and has now been suspended for the six months permitted under
Rule 41 and has not published the relevant accounts required under
the AIM Rules. Accordingly, admission of the ordinary shares to AIM
will be cancelled, effective from 7:00 a.m. on 29 December 2014.
The Company will continue to update shareholders by making
announcements via its corporate website, which can be found at
www.chinafoodcompany.com.
For further information:
China Food Company Plc
John McLean, Chairman Tel: +44 (0) 7768 031
454
www.chinafoodcompany.com
finnCap
Geoff Nash Tel: +44 (0) 20
7220 0500
Numis Securities
David Poutney (Broker) Tel: +44 (0) 20
7260 1000
Media enquiries:
Abchurch Communications
Canace Wong Tel: +44 (0) 20
7398 7714
canace.wong@abchurch-group.com www.abchurch-group.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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