26th Sep 2019 14:37
(Alliance News) - Walcom Group Ltd on Thursday said its chief executive has lent HKD350,000 to one of the firm's subsidiaries "for working capital purposes".
CEO Francis Chi has entered a loan agreement with Walcom Bio-Chemicals Industrial Ltd, a wholly owned Walcom subsidiary, and made HKD350,000, around USD45,000, available.
Interest on the principal loan amount is 8% per annum and the loan, plus interest, is repayable September 2020. It is unsecured and Chi has the right to call for early redemption of the loan provided he gives three months' notice.
With the loan agreement, animal feed additives producer Walcom now expects to meet liabilities through to 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," said Walcom.
Shares in Walcom were untraded on Thursday in London, last seen at 0.35 pence.
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
WALG.L