Walcom Group Ltd - Company Update
PR Newswire
London, May 15
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").
15 May 2020
WALCOM GROUP LIMITED
("Walcom" or "the Company")
Company update
Further to the announcement on 11 May 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 has sought to defer the repayment of certain of its bank loans and one such deferred loan repayment of RMB200k is due to be paid by the Company by the end of May 2020. The Company will require additional funding to repay this bank loan.
Based on Walcom's current cash flow projections, the Company will be able to continue operations until 25 May 2020. In the absence of the Director Loan now being received in part or in full by 25 May 2020, 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 |
