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
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer) |
+852 2494 0133 |
Allenby Capital Limited
David Hart / Asha Chotai |
+44 20 3328 5656 |