6 Mar 2020 08:52
Walcom Group Ltd - Company UpdateWalcom Group Ltd - Company Update
PR Newswire
London, March 6
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").
6 March 2020
WALCOM GROUP LIMITED(“Walcom” or “the Company”)
Company Update
The Board of Walcom provides an update on the Company’s working capital position.
Mr Francis Chi, Chief Executive Officer of the Company, has re-iterated his intention to provide a loan of HK$1,230,000 to Walcom Bio-Chemicals Industrial Limited, Walcom’s wholly owned subsidiary and expects to be able to do so by 15 March 2020.
The Company continues to receive customer orders which is benefitting its working capital position. In addition, the previously announced actions the Company has taken in relation to the deferral in part of rent, salary and other expenses have been beneficial. The Company is taking further actions in this regard, wherein its key subsidiary in Shanghai is making applications to the local authority for deferral of social security payments, as well as exploring other financial incentives and measures announced by the Shanghai government to mitigate the impact of COVID-19 on businesses.
As a result, the Board now believes that, in the absence of the loan being received in part or in full by 16 March 2020, the Company may 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 |