Paul Scott agrees with you thorpy10 May 2018 23:27
Koovs (LON:KOOV)
Share price: 10.5p (up 21.4% today, at 13:56)
No. shares: 175.4m
Market cap: �18.4m
Share price movement & interim funding
The share price of this Indian eCommerce fashion business has been very volatile of late, and spiked up about 60% earlier today, to a peak of about 14.4p. This has forced the company into making an announcement. It seems the price spike was spurious;
Koovs plc ("Koovs", or the "Company") (AIM: KOOV) notes the recent movement in its share price and would like to inform the market that it knows of no specific reason for this price movement.
It reiterates the last update, showing that it's almost out of cash, and has a massive requirement for future cash injections;
5ad741c7afb1bKoovs_cash.PNG
Lord Alli is propping up the company until end Aug 2018;
The Company expects shortly to announce that it has secured interim funding via a loan of �1.5m from Lord Waheed Alli, a director of the Company. This interim funding will provide the Company with cash resources until the end of August 2018. On the basis this loan is entered into, it is expected to be classified as a related party transaction.
The company is still trying to raise more funding;
The Board actively continues the previously announced dialogue with potential new investors in respect of the �50m funding requirement and will update the market in due course.
My opinion - as regulars know, I've been consistently negative about this share, based on its lamentable financial track record. It's sad to see Lord Alli throwing more & more money at a concept that has failed to get off the ground.
In 5 years it has failed to generate meaningful sales, and has incurred heavy losses every year. At some point, sadly, it's just necessary to admit defeat, and pull the plug. I think there's a very high likelihood that we're nearing the end game. However, the company has almost gone bust before, and new funding was found, so who knows?
Existing shares are extremely risky, with a very high likelihood of a 100% loss. Hence this one comes with massive risk warnings, it's for gamblers only, at this stage.
OK, that's all from me today. Thanks for dropping by!
Best wishes, Paul.
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