6th Dec 2019 14:31
(Alliance News) - Animal feed additives firm Walcom Group Ltd warned on Friday it could go out of business if new funding is not secured.
A week ago, Walcom noted it had to repay a short-term loan of CNY1 million, around GBP110,346, during the second week of December. The lender had, it said at the time, indicated another loan of same amount would then be made available.
However, Walcom said on Friday there will be no new loan, though it has agreed a plan for Walcom to repay the existing loan monthly over six months, with full payment by June next year.
"The company remains in discussions with Francis Chi, chief executive of the company, regarding the provision of a further loan to help stabilise the company's working capital position. However, if the company is unable to secure further funding, it has adequate working capital to meet its liabilities as they fall due until the end of December," said Walcom.
"Whilst the board is hopeful discussions regarding the provision of further funding will have a successful outcome, there can be no guarantee the company's working capital position will be stabilised."
"In the event 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," Walcom continued.
Shares in Walcom, which is based in Shanghai, were untraded in London on Friday, last quoted at 0.47 pence each.
By George Collard; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
WALG.L