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")
26 September
2019
WALCOM GROUP LIMITED
(“Walcom” or “the Company”)
Director Loan
Walcom announces that Walcom Bio-Chemicals Industrial Limited, a
wholly owned subsidiary of the Company, has entered into a loan
agreement (the “Loan Agreement”) with Francis Chi, Chief Executive of the Company.
Pursuant to the Loan Agreement, Mr Chi has made available a loan of
HK$350,000 to Walcom-Bio Chemicals
Industrial Limited for working capital purposes.
Under the terms of the Loan Agreement, interest is payable on
the principal loan amount at a rate of 8 per cent. per annum and
the loan principal (and accrued interest) is repayable on
25 September 2020. In addition, the
loan is unsecured and the lender, Mr Chi, reserves the right to
call for an early redemption of the outstanding loan amount by
giving three months’ notice.
As announced previously, the Company’s working capital position
has been constrained for a number of months. Following entering
into the Loan Agreement, the Company expects to be able to meet its
liabilities as they fall due until the end of October 2019. The Company continues to seek
additional funding to safeguard its liquidity and whilst the Board
is hopeful that these discussions will have a successful outcome,
there can be no guarantee that the Company’s working capital
position will be stabilised. In this instance, the Company may be
unable to continue its operations and may be forced into
liquidation with a consequential diminution in value to
shareholders.
Mr Chi is a director of and substantial shareholder in the
Company. Therefore, the entering into of the Loan Agreement
constitutes a related party transaction under the AIM Rules for
Companies. The directors of the Company, with the exception of
Mr Chi, consider, having consulted with the Company's Nominated
Adviser, that the terms of the Loan Agreement are fair and
reasonable insofar as the Company's shareholders are
concerned.
Further enquiries:
Walcom Group Limited
Francis Chi (Chief Executive Officer/Chief Financial Officer)
Jessie Chan (Deputy Chief Financial Officer) |
+852 2494 0133 |
Allenby Capital Limited
(Nominated Adviser and broker)
David Hart / Asha Chotai |
+44 20 3328 5656 |