27 Mar 2020 08:31
Walcom Group Ltd - Company UpdateWalcom Group Ltd - Company Update
PR Newswire
London, March 27
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").
27 March 2020
WALCOM GROUP LIMITED(“Walcom” or “the Company”)
Company update and further re director loan
Further to the announcement on 18 March 2020, the Board of Walcom provides an update on the Company’s working capital position. Regrettably, Mr Francis Chi, Chief Executive of the Company, has 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 reiterated his intention to provide the Director Loan.
The Company continues to receive and process customer orders. In addition, the management have sought to defer expenses, where possible, without affecting the normal operations of the Company.
The Company is due to make a partial repayment of a bank loan, amounting to RMB150k, by the end of March 2020. Whilst the Company has sufficient funds to make this repayment, the management are in discussions with the bank to seek to reduce the quantum to be repaid.
Irrespective of the outcome of these discussions, in the absence of the Director Loan being received in part or in full by 3 April 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 |