- Animal feed supplier Walcom said it was in talks with chief executive Francis Chi about him providing a loan to keep the company afloat.

Walcom must repay a short-term bank loan of RMB 1m during the second week of December.

The lender had verbally indicated that, following the repayment of that bank loan, a new loan of RMB 1m would be made available within several working days.

'Should the loan from Mr Chi be issued as envisaged by the board and the bank loan renewed, the company will have adequate working capital to meet its liabilities as they fall due until at least the end of January 2020,' Walcom said.

'Whilst the board is hopeful that discussions regarding the new bank loan and the provision of further funding will have a successful outcome, there can be no guarantee that the company's working capital position will be stabilised,' it added.

'In the event that 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.'

At 1:31pm: [LON:WALG] Walcom Group Ltd share price was -0.05p at 0.3p

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