(Alliance News) - AIM-listed Walcom Group Ltd on Monday said its subsidiary has secured a further loan of HKD270,000, about GBP24,793, from Chief Executive Francis Chi for working capital purposes.
Under the terms, Walcom said interest is payable on the principal loan amount at a rate of 8% per annum and the loan principal is repayable in mid-January 2021.
In addition, Walcom said the loan is unsecured and Chi reserves the right to call for an early redemption of the outstanding loan amount by giving three months' notice.
Following entering into this loan agreement, Chi has provided, in aggregate, loans of HKD620,000 to Walcom's unit Walcom Bio-Chemicals Industrial Ltd.
Back in December, Walcom said Chi intends to provide a loan of HKD1.5 million by the end of January.
On Monday, the Chinese investment company said it remains in talks with Chi regarding this funding.
"Whilst the board is hopeful that the discussions with Chi will have a successful outcome, there can be no guarantee that the company's working capital position will be stabilised," Walcom said in its statement Monday.
Walcom shares were untraded in London on Monday, last closing at 0.35 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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