Walcom Group Ltd - Further Director Loan
PR Newswire
London, January 13
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").
13 January 2020
WALCOM GROUP LIMITED
("Walcom" or "the Company")
Further Director Loan
Walcom announces that Walcom Bio-Chemicals Industrial Limited, a wholly owned subsidiary of the Company, has entered into a new loan agreement (the "Loan Agreement") with Francis Chi, Chief Executive of the Company. Pursuant to the Loan Agreement, Mr Chi has made available a further loan of HK$270,000 to Walcom Bio-Chemicals Industrial Limited ("Walcom Bio") for working capital purposes.
Under the terms of the Loan Agreement, interest is payable on the principal loan amount at a rate of 8 per cent. per annum and the loan principal (and accrued interest) is repayable on 12 January 2021. In addition, the loan is unsecured and the lender, Mr Chi, reserves the right to call for an early redemption of the outstanding loan amount by giving three months' notice. The terms of the Loan Agreement mirror the terms of the previous loan provided by Mr Chi, as announced on 26 September 2019. Following entering into this Loan Agreement, Mr Chi has provided, in aggregate, loans of HK$620,000 to Walcom Bio.
In its announcement dated 31 December 2019, the Company indicated that Mr Chi intends to provide a loan of HK$1,500,000 by the end of January. The Company remains in discussions with Mr Chi regarding the provision of the balance of this proposed funding. Should the further loans of HK$1,230,000 be received as currently envisaged, the Company will be able to meet its liabilities as they fall due until early February 2020, including the repayment of two bank loans totalling RMB 450,000 (c.HK$508,000) due before the end of January 2020. Whilst the Board is hopeful that the discussions with Mr Chi will have a successful outcome, there can be no guarantee that the Company's working capital position will be stabilised. Further announcements will be made in due course.
Mr Chi is a director of and substantial shareholder in the Company. Therefore, the entering into of the Loan Agreement constitutes a related party transaction under the AIM Rules for Companies. The directors of the Company, with the exception of Mr Chi, consider, having consulted with the Company's Nominated Adviser, that the terms of the Loan Agreement are fair and reasonable insofar as the Company's shareholders are concerned.
Further enquiries:
| Walcom Group Limited Francis Chi (Chief Executive Officer/Chief Financial Officer) Jessie Chan (Deputy Chief Financial Officer) | +852 2494 0133 |
| Allenby Capital Limited (Nominated Adviser and broker) David Hart / Asha Chotai | +44 20 3328 5656 |
