Company Update

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 Francis Chi (Chief Executive Officer/Chief Financial Officer)	[phone]
Allenby Capital Limited (Nominated Adviser and Broker) David Hart / Asha Chotai	[phone]