Company update and further re director loan

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").

3 April 2020

WALCOM GROUP LIMITED
(“Walcom” or “the Company”)

Company update and further re director loan

Further to the announcement on 27 March 2020, the Board of Walcom provides an update on the Company’s working capital position. Regrettably, Mr Francis Chi, Chief Executive of the Company, has 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 reiterated his intention to provide the Director Loan.

The Company continues to receive and process customer orders. In addition, the management have sought to defer expenses, where possible, without affecting the normal operations of the Company.

The Company made a partial repayment of a bank loan at the end of March 2020. However, the Company is required to make two further bank loan repayments totalling RMB450k by the end of April 2020.  The Company currently has insufficient funds to make these repayments.

In addition and irrespective of these bank loan repayments, in the absence of the Director Loan now being received in part or in full by 10 April 2020, the Company may 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)	[phone]
Allenby Capital Limited (Nominated Adviser and broker) David Hart / Asha Chotai	[phone]