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").

29 November 2019

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

Company Update

Walcom provides the following update regarding its working capital position.

Pursuant to the terms of an existing bank facility and as anticipated, the Company is required to repay a short-term bank loan of RMB 1 million during the second week of December 2019.  The lender has verbally indicated that, following the repayment of the bank loan, a new bank loan of RMB 1 million will be made available to the Company within several working days.

In order to repay the short-term bank loan, the Company will require additional funding and is in discussions with Mr Francis Chi, Chief Executive of the Company, regarding the provision of a further loan. Should the loan from Mr Chi be issued as envisaged by the Board and the bank loan renewed, the Company will have adequate working capital to meet its liabilities as they fall due until at least the end of January 2020.   

Whilst the Board is hopeful that discussions regarding the new bank loan and the provision of further funding will have a successful outcome, there can be no guarantee that the Company’s working capital position will be stabilised. In the event that it is unable to address the working capital shortfall, the Company may be unable to continue its operations and may 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)
Jessie Chan (Deputy Chief Financial Officer)
+852 2494 0133
Allenby Capital Limited (Nominated Adviser and broker)
David Hart / Asha Chotai
+44 20 3328 5656

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