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").
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 Director
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
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