Walcom Group Ltd - Company update and further re director loan
PR Newswire
London, April 22
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").
22 April 2020
WALCOM GROUP LIMITED
("Walcom" or "the Company")
Company update and further re director loan
Further to the announcement on 16 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.
As previously announced, the Company was due to make a bank loan repayment on 23 April 2020. The Company has agreed with the provider of that loan to defer that loan repayment of RMB250k until 30 April 2020. In addition, a separate loan repayment of RMB200k is also due on 30 April 2020.
Based on Walcom's current cash flow projections, the Company will be able to continue operations until the date on which these loan repayments are due to be made. If the Director Loan is not received prior to 30 April 2020, the Company will be unable to service the loan repayments 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 |
