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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