Sweet China still waiting for debt decision

9th Sep 2009 14:56

Confectionery firm Sweet China has attracted £365,565 from new investors via an equity placing, although it will only get the money if it finalises a £400,000 debt facility.The group said in July it had agreed the debt facility in principal. It wants the money to fund the build up of stock for the peak selling season of Christmas.'This facility has not yet formally been entered into and negotiations are continuing,' said Sweet China today. 'The directors are hopeful that these negotiations will be successfully concluded in the near future.'But it warned that if the debt facility or equity funding is delayed or not available the company might not be able to meet seasonal orders and bosses would need 'to reassess the future viability of the Sweet Essentials business'.Also, in July, the company signed a two-way distribution agreement with Shanghai Guan Sheng Yuan Food, one of China's largest confectionary manufacturersThat allowed Hong Kong-based operating company, Sweet Essentials, to distribute a range of SGSY's White Rabbit products outside of China, while SGSY would sell Sweet Essentials brands in China.Results for the year ended 30 April 2009 are due by 30 October.