REG - Amala Foods PLC - Funding Updates

Amala FoodsAnnouncement

10/10/2025 08:00

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RNS Number : 8488C  Amala Foods PLC  10 October 2025

 

Amala Foods Plc

("Amala" or the "Company")

 

Funding Updates

 

The board of Amala Foods Plc (LON: DISH) wishes to make this announcement to
clarify the implication of some matters referenced in the Company's results
for the year to 31 March 2025 ("Accounts").   The audit report in the
Accounts included an adverse opinion due the outstanding nature of the
Company's long term debt.   The Company is currently relying on financing
from a relatively new convertible loan funding agreement with a professional
investor ("New Loan") detailed in the Accounts.  The amount of the New Loan
is £100,000 and drawdowns are to be made with agreement of the lender of the
New Loan ("Investor") but the New Loan carries no interest and matures in
August 2026.  The New Loan is provided by Philip Reid who nominated his son,
Sam Reid to the Board as Non-Executive Director.

 

The Company has various debt obligations that are currently due for
repayment.  The Company has entered into a new agreement with Riverfort, its
largest creditor, on 8 October 2025 that has secured a standstill which
prevents Riverfort requesting repayment of sums due to it before 7 October
2026.  The Company intends to seek similar standstill agreements with the
holders of the other convertible loan notes that the Company has issued.
However, there is no guarantee that Company will be able to reach an agreement
with these lenders to give the Company more time to repay them, if required.

 

The Company is currently working with the Investor to identify a target
company or business which the Company could acquire in conjunction with
seeking admission to the Equity Shares Commercial Company ("ESCC") category of
the Official List.  The Company is also working with the Investor to secure
approximately £250,000 of further funding to meet part of the costs of any
Initial Transaction.  There can be no guarantee at this stage that the
Company will be able to identify a suitable target, that the Company will be
able to raise equity at a price acceptable to the Board or that the Company's
shares will be admitted to the ESCC.

 

The Company continues to incur minimal overheads with the Directors continuing
not to receive or accrue any form of remuneration which has been consistent
over recent years.

 

If further funding is not available in the medium term and/or if debt holders
were to request immediate repayment in cash then there is a material risk that
the Board would seek to place the Company into an insolvency process which may
lead to administration.

 

The Company will update the market in due course.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION EU 596/2014 ("MAR").

 

Enquiries:

 

Jonathan Morley-Kirk, Non-Executive Chairman

jm-k@hotmail.co.uk

Tel: +44 7797 775546

 

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