China Food Company PLC Subscription of Convertible Loan Notes (3643N)
06 September 2013 - 4:00PM
UK Regulatory
TIDMCFC
RNS Number : 3643N
China Food Company PLC
06 September 2013
Press Release 6 September 2013
China Food Company Plc
("China Food", "Group" or the "Company")
Subscription of Convertible Loan Notes and
Conversion of Unsecured Debt into Loan Notes
China Food Company Plc (AIM:CFC), a leading Chinese manufacturer
of cooking and dipping sauces, announces it has raised GBP850,000
before expenses through a subscription of 850 Convertible Loan
Notes of GBP1,000 each ("Loan Notes") by existing and new investors
(the "Subscription"). This follows the Company's recent appointment
of PwC to manage the potential sale of the Group's animal feed
production business, Fuss Feed (Weifang) Co., Ltd, which it is
anticipated will be completed in summer 2014. The Loan Notes
subscribed for today will provide interim support until the sale of
the animal feed business is completed and the funds from this
disposal are received.
The Loan Notes subscribed for are A Loan Notes and all Loan
Notes may be converted at any time up to maturity at a price of
15.5 pence at the option of the Loan Note Holder. Interest will be
charged at a rate of 17.5 per cent per annum until 30 September
2013; 20 per cent per annum from 1 October to 31 December 2013 and
25 per cent per annum thereafter until redemption. A redemption
premium of 1 per cent of the Loan Note holder's original holding
will be payable on redemption.
The Loan Note holders retain the right not to redeem their
holding until maturity of the Loan Notes on 3 November 2014, in
which case the interest rate will be fixed at the rate prevailing
on the date of the Company's proposed redemption. In the event the
Company is unable to transfer funds from the PRC to pay interest
when due, the Loan Note holders have agreed that interest charged
will be rolled up and compounded semi-annually to maturity.
Conversion of unsecured debt into Loan Notes
At the same time as the Subscription, a number of parties will
be converting existing unsecured debt owed to them by the Company
into a total of 390 A Loan Notes and 75 B Loan Notes (the
"Conversion"). These parties include three directors:
Director Number of A Loan Notes Total Loan Notes
received held post Conversion
------------------------ --------------------------- --------------------------
John McLean 175 225
Raphael Tham 175 175
Clifford Halvorsen 40 40
In accordance with the AIM Rules for Companies the Conversion by
the directors is a related party transaction. The Independent
Directors, having consulted with the Company's Nominated Adviser,
finnCap Limited, consider that the Conversion by directors is fair
and reasonable insofar as the Company's shareholders are
concerned.
The Company has applied to ISDX for the newly issued 1,240 A
Loan Notes to be admitted to trading ("Admission"). Admission is
expected to occur on 11 September 2013. Following the Subscription
and the Conversion, there is a total of 5,694 Loan Notes in issue,
totaling GBP5.69 million.
Commenting on the Subscription, John McLean, Chairman of China
Food Company plc, said: "The Board is pleased that investors have
continued to support the Company through this exciting period and
we look forward to repaying this support over the coming year
following the sale of our Fuss Feed subsidiary. Our advisers have
expressed their confidence at being able to find a suitable buyer
at the right price and we look forward to updating the market in
due course."
- Ends -
For further information:
China Food Company Plc
John McLean, Chairman Tel: +44 (0) 7768 031 454
www.chinafoodcompany.com
finnCap
Geoff Nash / Ben Thompson (Corporate Tel: +44 (0) 20 7220
Finance) 0500
Simon Starr (Broking)
Numis Securities
David Poutney (Joint Broker) Tel: +44 (0) 20 7260
1000
Media enquiries:
Abchurch Communications
Henry Harrison-Topham / Joanne Shears Tel: +44 (0) 20 7398
7702
henry.ht@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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