Walcom still facing funding hole as it awaits CEO loan
By Josh White
Date: Friday 29 May 2020
(Sharecast News) - Walcom Group updated shareholders on its current working capital position, on Friday, reporting that its chief executive officer Francis Chi had still been unable to provide the proposed loan of HKD 1.23m £0.13m) as intended.
The AIM-traded firm said Chi had again reiterated his intention to provide the director loan, but it warned there could be no certainty as to its provision or timing.
As it had previously announced, the company has been taking steps to conserve its cash resources, including the deferral of certain expenses.
To that end, Walcom said it was able to defer a loan repayment of CNY 0.2m (£0.02m), previously due to be paid at the end of May, to 3 June.
"The company will require additional funding to repay this bank loan," the board said.
"Therefore, based on Walcom's current cash flow projections, the company will be able to continue operations until 3 June.
"In the absence of the director loan now being received in part or in full by 3 June, the company would be unable to continue its operations and would be forced into liquidation with a consequential diminution in value to shareholders."
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