SyQic expects chief executive Jamal Hassim to continue to forego his salary for the time being and may provide further financial support to the company.
The company says that as previously announced it has for some time had a high level of outstanding debtors and the management team has been working to reduce this amount, but with slow progress.
The board believes the debtors are largely recoverable but the low frequency of payments has put pressure on the Company's working capital position.
As a consequence, since June 2014 SyQic has received a number of loans and other financial support from Hassim.
The financial support provided to the company that has accumulated since June 2014 until the end of August 2016, is made up as follows:
- Salary not drawn - £195.0k
- Amounts lent to the company - £302.9k
- Expenses paid on behalf of the company - £114.0k
- Total financial support - £611.9k
All the financial support is unsecured, interest free and does not have a set repayment date. Hassim is expected to continue to forego his salary for the time being and may provide additional similar financial support in the future as necessary.
In addition, the loan of MYR300,000 (being approximately £55,000) provided by Hassim to the company as per an agreement dated 12 November 2013 remains outstanding. This loan is unsecured, interest free and does not have a set repayment date.