£50m funding req is twice MCap23 Apr 2018 18:47
This is too HIGH RISK for my liking.
Funding is a necessary evil and is needed by AIM companies both good or bad. At Koov, funding requirement is more than Double current MCap (even after +28% rise today).
Current MCap.......£23m
Funding needed....£50m
Shares in issue......175m
No guarantee at this stage if £50m funding deal will be agreed. It is a big ask. Company asking for funding that is TWICE the size of current MCap. Funding talks break down all the time if price gets too high, beyond what loan provider is willing to pay for receiving new shares issued.
Questions to ask:
(1) At what discounted price ?
(2) How many New shares to issue?
(3) Extent of dilution for existing holders.
Let's face it there will be dilution one way or another. Only unknown is the Issue price of new shares? And if funding talks break down, then Placing could be at even more distressed price.
NOTE: current cash runs out end of Aug'18.
Just in my opinion. GLA.