(Alliance News) - India-focused online fashion retailer Koovs PLC on Monday said it remains in talks with major shareholder Future Lifestyle Fashions Ltd, part of Indian retail giant Future Group, for completing its outstanding GBP6.5 million investment.
Koovs shares were down 31% at 2.50 pence each in London on Monday afternoon. As recently as three years ago, the stock traded about 70p.
FLFL - which currently holds a 26% stake in Koovs - has already invested GBP250,000 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 the further funding from FLFL or through alternative sources.
By Tapan Panchal; tapanpanchal@alliancenews.com
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