Walcom still waiting for desperately-needed director loan

Walcom updated the market on its working capital position on Thursday, confirming that its chief executive, Francis Chi, has still been unable to provide the proposed loan of HKD 1.23m to its wholly-owned subsidiary Walcom Bio-Chemicals Industrial, as intended.

The AIM-traded firm said Chi had again reiterated his intention to provide the director loan, but the board warned there could be no certainty as to the provision or the timing of the loan.

“Based on Walcom’s current cash flow projections, the company will be able to continue operations until 22 April,” the board said in its statement.

“As previously announced, the company is required to make two bank loan repayments totalling CNY 0.45m, the first of which is due on 23 April.”

Walcom said that if the director loan is not received before 23 April, it would be unable to service the loan repayments and 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,” the board said.