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 |