Sorbic : 7 May 2015 - Sorbic Update on Suspension

("Sorbic"  or  the  "Company")  

Further  to  the  announcement  of  22  April  2015,  Mr  Wang  Yan  Ting  ("Mr.  Wang"),  the  Company's  CEO  has   been   removed   from   office,   both   at   the   Board   (plc)   level   and   in   respect   of   the   operating  subsidiary   ("LVST")   in   China.     Furthermore,   Mr.   Wang's   role   as   Legal   Representative   in   China   has  been  terminated  and  he  has  been  replaced  by  Mr.  Cai  Lun,  the  managing  partner  of  Guolan,  a  Beijing  law  firm.      

Since   being   replaced   as   the   Company's   Legal   Representative   for   LVST   in   China   and   from   the   LVST  board,   Mr.   Wang   has   declined   to   hand-­‐over   the   Company's   corporate   seals   (chops)   and   business  licences,   which   he   removed   from   the   premises   before   he   was   dismissed.     The   local   police   were  contacted,   but   deemed   Mr.   Wang's   non-­‐cooperation   as   a   commercial   matter   and   were   therefore  unwilling  to  assist.  

As  a  result  of  Mr.  Wang's  non-­‐cooperation,  the  bank  accounts  and  the  day-­‐to-­‐day  operations  of  the  Company  still  remain  under  the  control  of  Mr.  Wang.    Furthermore,  Mr.  Wang  has  confirmed  that  he  has  transferred  funds  belonging  to  the  Company  which  remain  under  his  control  and,  to  date,  he  has  refused   to   return   them.     At   31   March   2015,   management   accounts   showed   total   cash   balances   of  approximately  RMB  72  million  (£7.7  million).  

Sorbic   International   plc   is   wholly   reliant   on   the   transfer   of   funds   from   China   to   meet   its   operating  costs  and  to  repay  the  loan  notes  of  approximately  £3.75  million  which,  as  detailed  in  the  Company's  preliminary   results   released   in   January   2015,   remain   outstanding   and   are   therefore   in   default.     As   a  result  of  the  above,  the  financial  position  of  Sorbic  International  plc  is  uncertain.  

The   Board   has   been   informed   that   the   Company's   factory   in   Linyi   continues   to   be   fully   operational  
and  Mr.  Wang  remains  in  regular  contact  with  the  Company.  

The   Group's   new   LVST   board   is   working   closely   with   the   Group's   legal   team   in   Beijing   and   the   UK  non-­‐executive  Directors,  who  have  actively  been  on  the  ground  in  China  in  recent  months  addressing  this  issue  and  they  will  continue  to  return  to  China  whenever  they  are  needed.      

The   Company's   shares   remain   suspended   from   trading   and   further   updates   will   be   made   in   due  
course.    

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   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.  

Sorbic   International   operates   through   its   wholly   owned   subsidiary   Linyi   Van   Science   and   Technique  Co.  Ltd  ("LVST").  

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