2nd Jun 2020 17:45
(Alliance News) - Walcom Group Ltd on Tuesday said it may sink into liquidation before the end of the week as it is yet to receive a proposed loan from its chief executive.
Shares in the company closed down 36% at 0.175 pence each in London on Tuesday.
Walcom is still waiting on a HKD1.2 million, about GBP126,494, loan from Francis Chi, who has reiterated his intention to provide the financing.
The company said it has deferred a RMB200,000, about GBP22,444, loan repayment until Friday. Walcom added it needs additional cash to pay the loan.
"Therefore, based on Walcom's current cash flow projections, the company will be able to continue operations until June 5. In the absence of the director loan now being received in part or in full by June 5, the company would be unable to continue its operations and would be forced into liquidation with a consequential diminution in value to shareholders," Walcom warned.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.