14th Feb 2020 11:54
(Alliance News) - Walcom Group Ltd said Friday that although Chief Executive Officer Francis Chi has pledged to provide a HKD1.2 million, about GBP121,463, to subsidiary Walcom Bio-Chemicals Industrial Ltd, arranging the funding for the loan has taken longer than expected.
As a result, Chi said his intention is to provide the loan to the animal feed additives firm's subsidiary during next week.
Walcom said it has enough working capital to meet its liabilities until Friday next week. During this time the company said it is taking action to extend this period, including discussions of more favourable trade terms with customers and suppliers.
However, in the event that Chi is unable to provide the loans, Walcom said it is likely that it will not be able to continue its operations and will go into liquidation, with a considerable fall in value to shareholders.
Shares in Walcom - which is based in Shanghai - were untraded on Friday, last quoted at 0.30 pence in London.
By Dayo Laniyan; [email protected]
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