LONDON (ShareCast) - (Sharecast News) - Walcom announced it was in negotiations regarding the proposed disposal of its entire interest in its subsidiary Walcom Bio-Chem Thailand on Wednesday.
The AIM-traded firm said the disposal would be to the general manager of, and current 40% shareholder in, Walcom Thailand.

Walcom currently owned 55,000 shares in Walcom Thailand, representing 55% of its issued share capital.

As it had announced previously, Walcom's working capital position remained "severely constrained".

The board said it now believed that, without further action, it may not be able to meet its liabilities as they fell due by the middle of April.

"The directors of Walcom therefore believe that the proposed disposal is a necessary action to ease the company's immediate short-term working capital position," the board said in its statement.

"If the proposed disposal is completed, it is expected that the net proceeds of the disposal will be received prior to the middle of April."

Walcom said it was continuing to consider all other possible options to improve its working position.

"The proposed disposal will be subject, inter alia, to the entering into and completion of a share purchase agreement.

"As such, there is no certainty that the proposed disposal will proceed nor any certainty regarding the terms on which it would proceed."

A further announcement would be made in due course, the directors said.

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