28 November 2017
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR")
WALCOM GROUP
LIMITED
(“Walcom” or “the
Company”)
Loan
Agreements
Further to the trading statement released on 13 November 2017, Walcom announces that the
Company’s subsidiary, Walcom Bio-Chem (Thailand) Co. Ltd (“Walcom Thailand”), has
entered into two agreements for the provision of two unsecured
one-year loans of THB1 million each,
amounting to THB2 million in
aggregate (together, the "Loans").
The Loans are required as the Company has amended its
inter-group trading terms with Walcom Thailand such that invoices
for the provision of goods from the Company are now payable on
presentation.
The proceeds from the Loans are to be used by Walcom Thailand
for general working capital purposes.
The Loans are being provided by Ms Suladda Buddhinuntaopas and
Ms Suwanna Budhinuntaopas, who are
the sisters of Mr Paitoon
Buddhinunta-opas, the general manager of Walcom Thailand and
the Company’s group sales director. In addition, both Ms Suladda
Buddhinuntaopas and Ms Suwanna
Budhinuntaopas are shareholders in Walcom Thailand, owning
12 per cent. and 18 per cent., respectively.
The Loans bear interest at a rate of 12 per cent. per annum,
which will be payable monthly in arrears. The Loans are repayable
on the first anniversary of entry into the loan agreements. The
Loans, and all applicable interest, are immediately repayable on
certain customary events of default occurring.
Ms Suladda Buddhinuntaopas and Ms Suwanna Budhinuntaopas have indicated that they
would be supportive should Walcom Thailand require further
funds.
As also set out in the Company’s trading statement on
13 November 2017, the Company has
entered into a new short-term Renminbi bank loan equivalent to
HK$2.3 million which replaced its
previous loan of the same currency and amount, which has been used
to finance the group’s general working capital.
The Company continues to closely monitor its working capital
requirements.
Further enquiries:
Walcom
Group Limited
Francis Chi (Chief Executive Officer)
Albert Wong (Chief Financial Officer) |
+852 2494 0133 |
Allenby Capital Limited
Virginia Bull |
+44 20 3328 5656 |