Walcom Group Ltd Company Update

 
TIDMWALG 
 
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"). 
 
                                                                    5 June 2020 
 
                             WALCOM GROUP LIMITED 
                          ("Walcom" or "the Company") 
 
                                Company update 
 
The Board of Walcom provides an update on the Company's current 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 the Company 
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. 
 
Further to the announcement on 2 June 2020, the Company has negotiated a 
payment plan with its bank in relation to a loan which was due for repayment at 
the end of May 2020. Under the new payment scheme, the Company 
will repay RMB150,000 by 12 June 2020, with a further six monthly instalments 
of RMB50,000 being payable commencing in July 2020. 
 
The Company will require additional funding to satisfy the loan repayment due 
on 12 June 2020. Therefore, based on Walcom's current cash flow projections, 
the Company will be able to continue operations until 12 June 2020. In the 
absence of the Director Loan now being received in part or in full by this 
date, 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                                           [phone] 
Francis Chi (Chief Executive Officer/Chief Financial 
Officer) 
 
 
Allenby Capital Limited (Nominated Adviser and Broker)       [phone] 
David Hart / Asha Chotai 
 
 
 
END 
 

(END) Dow Jones Newswires

June 05, 2020 10:08 ET (14:08 GMT)