MOMENTUM FIN (01152) has received a demand letter and may not be able to repay as requested. Resumption of trading on September 19.

MOMENTUM FIN (01152) announced that the company received a letter dated September 16, 2024 from the holders of acceptance notes issued by the company with a total principal amount of HK$20 million, with the company as the recipient. The demand letter stated (among other things) that there has been a significant adverse change in the company's financial position, as the comprehensive net profit for the six months ended June 30, 2024 has decreased substantially; and the holders of acceptance notes requested immediate repayment of the outstanding total amount of approximately HK$20.3 million within 14 days from the date of the demand letter. As of June 30, 2024, the company had outstanding trade and other payables of approximately HK$214.1 million, loans from the ultimate holding company of approximately HK$50 million, bank and other borrowings of approximately HK$16 million, acceptance notes of approximately HK$39.3 million, and corporate bonds of approximately HK$50.5 million, with bank balances and cash of approximately HK$12.2 million. Based on the above, the board of directors believes that the company may not be able to repay the outstanding amount by the deadline specified in the demand letter. The company is currently assessing the impacts related to the demand letter and seeking professional advice. Additionally, the company is in discussions with the holders of acceptance notes and other creditors of the group to explore alternative repayment arrangements. The company has applied to the Stock Exchange for the resumption of trading of its shares on September 19, 2024.