The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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So in a nutshell, FLFL & Kishore Biyani did not fulfil their side of the deal. They got their technology & platform from Koovs, they put Avni Biyani on the Board & are now blaming the RBI when they had all year to pay the money that was owed to Koovs.
Personally, I would like to see a clean break from FLFL, but I don't think Koovs could afford the legal fees to fight this. Could take years to sort out in a country like India.
They just do what they want in India. The CFO Robert Pursell REPEATEDLY mentioned that both deals (the 15p & blended deal) were legally binding. Biyani & co are just sitting there laughing knowing that a Micky Mouse company like Koovs run by clowns have absolutely no sway in India.
It has been nearly two months since the deal was stalled & still nothing!
With the RBI having thrown a spanner in the works & FLFL having not provided an alternative solution thus far, Koovs must now go ahead with alternative plans.
I believe that there are only three financing options now.
Money from outside of India to provide a placing, keeping FLFL on board.
Money from outside of India to take control of FLFL stake as well. By now, 18 months down the line, Koovs must know if FLFL are bringing anything to the table.
Another loan to get Koovs through to the next placing..
Personally, with this delay, I believe that there is a lot of legal wrangling going on behind the scenes.
Opening three stores in 18 months was quite pathetic & Koovs did look to keep an arms length from FLFL. We don't even know if Koovs utilised any of FLFL's warehousing, logistics, manufacturing etc
Koovs needs to release the mother of all placings pretty soon...….
Looking at this years FLFL Investor presentations & absolutely no mention of Koovs. Lots of mentions of their other brands esp Brand Factory, that is doing rather well using Koovs platform & technology.
https://futurelifestyle.in/financials.aspx#parentHorizontalTab2
The last significant mention was in the 4th Feb presentation FY 2019 which was a pdf from Nov 2018
https://futurelifestyle.in/Admin/pdf/20190204_Investors_Presentation.pdf
With the way FLFL have messed about with the funding all year (missing the March 27th 2019 deadline), I am seriously concerned about their commitment to the whole deal.
It has been nealy 2 months