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

[email protected]

Tel: +44 7797 775546