30 Apr 2020 10:57
Walcom Group Ltd - Company UpdateWalcom Group Ltd - Company Update
PR Newswire
London, April 30
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
30 April 2020
WALCOM GROUP LIMITED(“Walcom” or “the Company”)
Company update
Further to the announcement on 22 April 2020, the Board of Walcom provides an update on the Company’s working capital position.
Mr Francis Chi, Chief Executive of the Company, has still been unable to provide the proposed loan of HK$1,230,000 (the “Director Loan”) to Walcom Bio-Chemicals Industrial Limited, Walcom’s wholly owned subsidiary, as intended. Mr Chi has, again, reiterated his intention to provide the Director Loan but there can be no certainty as to the provision or the timing of the Director Loan.
The Company has generated sufficient funds from its trading activities to enable it to repay RMB400k of bank loans due on 30 April 2020. The repayment of a further RMB50k of bank loans has been deferred. Based on Walcom’s current cash flow projections, the Company will be able to continue operations until 10 May 2020. If the Director Loan is not received prior to 10 May 2020, the Company will be unable to service the outstanding loan repayment and the Company would be unable to continue its operations and would be forced into liquidation with a consequential diminution in value to shareholders.
Further announcements will be made in due course.
Further enquiries:
| Walcom Group Limited Francis Chi (Chief Executive Officer/Chief Financial Officer) | +852 2494 0133 |
| Allenby Capital Limited (Nominated Adviser and Broker) David Hart / Asha Chotai | +44 20 3328 5656 |