Walcom Group Ltd Proposed Disposal of Walcom Bio-Chem (Thailand) Company

 
TIDMWALG 
 
This announcement contains inside information as stipulated under the Market 
Abuse Regulations (EU) no. 596/2014 ("MAR") 
 
                                                                  13 March 2019 
 
                             WALCOM GROUP LIMITED 
                          ("Walcom" or "the Company") 
 
        Proposed Disposal of Walcom Bio-Chem (Thailand) Company Limited 
 
Walcom announces it is in negotiations regarding the proposed disposal of its 
entire interest in its subsidiary Walcom Bio-Chem (Thailand) Company Limited 
("Walcom Thailand"), to the General Manager of, and 40 per cent. shareholder 
in, Walcom Thailand (the "Proposed Disposal"). Walcom currently owns 55,000 
shares in Walcom Thailand, representing 55 per cent. of Walcom Thailand's 
issued share capital. 
 
As announced previously, Walcom's working capital position remains severely 
constrained.  The board of the Company now believes that without further 
action, the Company may not be able to meet its liabilities as they fall due by 
the middle of April 2019.  The directors of Walcom therefore believe that the 
Proposed Disposal is a necessary action to ease the Company's immediate 
short-term working capital position.  If the Proposed Disposal is completed, it 
is expected that the net proceeds of the disposal will be received prior to the 
middle of April 2019. 
 
The Company continues to consider all other possible options to improve the 
Company's working position. 
 
The Proposed Disposal will be subject, inter alia, to the entering into and 
completion of a share purchase agreement. As such, there is no certainty that 
the Proposed Disposal will proceed nor any certainty regarding the terms on 
which it would proceed. 
 
A further announcement will be made in due course. 
 
Further enquiries: 
 
Walcom Group Limited                                  [phone] 
Francis Chi (Chief Executive Officer) 
Albert Wong (Chief Financial Officer) 
 
Allenby Capital Limited                               [phone] 
David Hart / Asha Chotai 
 
 
 
END 
 

(END) Dow Jones Newswires

March 13, 2019 03:00 ET (07:00 GMT)