28 Nov 2017 16:06
Walcom Group Ltd - Loan AgreementsWalcom Group Ltd - Loan Agreements
PR Newswire
London, November 28
28 November 2017
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")
WALCOM GROUP LIMITED
(“Walcom” or “the Company”)
Loan Agreements
Further to the trading statement released on 13 November 2017, Walcom announces that the Company’s subsidiary, Walcom Bio-Chem (Thailand) Co. Ltd (“Walcom Thailand”), has entered into two agreements for the provision of two unsecured one-year loans of THB1 million each, amounting to THB2 million in aggregate (together, the "Loans").
The Loans are required as the Company has amended its inter-group trading terms with Walcom Thailand such that invoices for the provision of goods from the Company are now payable on presentation.
The proceeds from the Loans are to be used by Walcom Thailand for general working capital purposes.
The Loans are being provided by Ms Suladda Buddhinuntaopas and Ms Suwanna Budhinuntaopas, who are the sisters of Mr Paitoon Buddhinunta-opas, the general manager of Walcom Thailand and the Company’s group sales director. In addition, both Ms Suladda Buddhinuntaopas and Ms Suwanna Budhinuntaopas are shareholders in Walcom Thailand, owning 12 per cent. and 18 per cent., respectively.
The Loans bear interest at a rate of 12 per cent. per annum, which will be payable monthly in arrears. The Loans are repayable on the first anniversary of entry into the loan agreements. The Loans, and all applicable interest, are immediately repayable on certain customary events of default occurring.
Ms Suladda Buddhinuntaopas and Ms Suwanna Budhinuntaopas have indicated that they would be supportive should Walcom Thailand require further funds.
As also set out in the Company’s trading statement on 13 November 2017, the Company has entered into a new short-term Renminbi bank loan equivalent to HK$2.3 million which replaced its previous loan of the same currency and amount, which has been used to finance the group’s general working capital.
The Company continues to closely monitor its working capital requirements.
Further enquiries:
| Walcom Group Limited Francis Chi (Chief Executive Officer) Albert Wong (Chief Financial Officer) | +852 2494 0133 |
| Allenby Capital Limited Virginia Bull | +44 20 3328 5656 |