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")
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
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.
Walcom Group Limited +852 2494 0133
Francis Chi (Chief Executive Officer/Chief Financial
Allenby Capital Limited (Nominated Adviser and Broker) +44 20 3328 5656
David Hart / Asha Chotai
(END) Dow Jones Newswires
May 15, 2020 10:11 ET (14:11 GMT)