CHINA FOOD COMPANY PLC ('China Food', the 'Group' or the 'Company')
Following the operational update on 25th June 2015, the Company has signed an engagement letter on 30th September 2015 with Jomec Business & Legal Consulting BV ('Jomec'). Jomec has been working with the Company for six months and has introduced a potential party who may be interested in acquiring the condiments division of China Food. A framework for the deal structure has been discussed with the interested party and the next step is to agree a detailed timetable, which will include the completion of due diligence on the condiments division.
The Board understands that the Chinese operations (comprising the condiments division and the animal feed division) continue to perform as previously reported.
As a result of the above, it has been agreed with the required majority of the loan note holders of the
£5.822 million of Convertible Loan Notes of £1,000 each outstanding ('Loan Notes'), that the redemption date be extended to 31st December 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 of its operating businesses. Without a sale of at least one of the operating businesses the Company will not have sufficient funds to redeem the Loan Notes.
John McLean, Chairman Tel: +44 (0) 7768 031 454
ww w.chinafo o dco m pany.co m
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