- Angela Gonzalez-Rodriguez |
New York – UK-listed Indian fashion e-commerce platform Koovs PLC said Monday it remains in talks with major shareholder Future Lifestyle Fashions Ltd, owned by Future Group, for completing its outstanding 6.5 million pounds investment.
Koovs shares were down 31 percent at 2.50 pence each in London on Monday afternoon. As a reference, three years ago, the stock traded about 70 pence.
FLFL currently holds a 26 percent stake in Koovs and has already invested 250,000 pounds for 881,523 convertible preference shares at 28.36 pence each, which will convert to ordinary shares in June 2020. The capital infusion was paused after the Reserve Bank of India asked FLFL to reapply for approval before any further subscriptions are made.
"FLFL has confirmed to the company that it is in the process of reapplying for approval of the investment from the Reserve Bank of India and that it remains committed to honouring the investment," Koovs said.
Koovs also said that it is "actively considering all other financing alternatives available to it." The company currently has cash reserves of around GBP2.2 million which is sufficient for 2019.
The London-based, however, warned that it may no longer be able to trade as a going concern if it fails to secure further funding from FLFL or through alternative sources.
Koovs PLC (LON: KOOV) have seen their shares sink across Monday trading, amid talks between shareholders over a major financial investment.
Shares of Koovs sunk 29.6 percent to 2 pence apiece on Monday.