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Just a thought. This was also in the agreement. Any thoughts on how this may affect us in the future:
"If, for any reason, it is not possible to issue the CCPS instrument, and consequently the Second Tranche does not complete, then Koovs has the right (subject to shareholder and any other necessary approvals), but not the obligation, to buy back 21,391,563 Ordinary Shares held by FLFL for a nominal value (subject to such price being compliant with relevant rules and regulations) in order to ensure that the effective price (before factoring in the consideration that FLFL would receive as a result of such repurchase) of the First Tranche is 15p per new Ordinary Share issued. Any Ordinary Shares repurchased may be cancelled or held in treasury."
I agree. There is too much progress in the company to allow it to collapse, for a relatively small amount of money. I bought more yesterday.
That is the way I look at it. The price can go where it wants, as my plan is to hold long term.
If you look at the two main stumbling blocks which have caused the share price to collapse, you can't really blame KOOV. In fact, KOOV has handled them both well.
The first event was demonetization. This caused a drop in sales, and KOOVS managed to survive through it.
The second event was fundraising through FLFL. This was caused by FLFL's negligence, and cannot be blamed on KOOV. FLFL is in India and their CFO should have been aware of the RBI restrictions. KOOV is listed on the LSE, and their duty is to follow the investment rules in UK. I would not expect them to know the intricacies of rules imposed by the RBI. KOOV have taken the necessary action to protect the company till funding is sorted.
FLFL will be very embarrassed by recent events and it will be damaging to their reputation. Their CFO will be working round the clock to sort this mess out.
Positive update, commitment from FLFL, and measures to reduce costs till funding is completed. All we could have hoped for. Well done!
This is currently priced to fail. I am happy with the rns and expect the funding problem to be sorted in the coming weeks.
Continued growth and funding update.
3p about to be taken out.
just bought more for next week. Hopefully, something in the weekend press.
NT at 14p. Strong chance of a rebound at this level.
That's the way I read it. Future will have to reapply to buy the next tranche. Paper exercise?
I think what’s happened is that Future will need authorization from the RBI everytime they buy a tranche of shares. Each tranche is treated like a new contract.
It must be genuine if the RBI have been mentioned. Indian bureaucracy and more administrative delays.
Was expecting some bad news the way the share was going down each day. Looks like a big bounce coming up.
Good news and shows we don’t need all the money in one tranche. Nice to see they are tied in for 12 months. If we get regular investments of £0.25m, then it will also help steady the share price. Also boded well that we got the investment before the trading update.
Some very large trades now being put through.
I contacted Tally and asked if they would be usable via Garmin Pay. Here is their reply:
“
Thank you for getting in touch.
We have in the development pipeline to be connected to Apple and Android pay but I will pass this feedback on to the development team about Garmin Pay.
If you need anything else please get back in touch.
Regards,
Kris”
It’s all about getting the Company into profit and this will help. I like the no return clause.
I fully expect more news to come.
03/09/2019 7:00am
UK Regulatory (RNS & others)
TIDMKOOV
RNS Number : 9725K
Koovs PLC
03 September 2019
3 September 2019
Koovs plc
("Koovs" or the "Company")
New Brand launched and further roll out of Concessions
Koovs plc (AIM: KOOV), the Western fashion experts for online Indian consumers, is pleased to announce a new contract with Future Lifestyle Fashions Limited ("FLFL") to develop a new and exclusive fashion range for FLFL's Brand Factory (the "Brand Factory Contract").
Under the terms of the Brand Factory Contract, Koovs will develop an exclusive range of menswear clothing for Brand Factory on a wholesale basis, with no right of return if the goods are not sold. The new range will be available under the Chelsea King brand name and, initially, will be sold in 25 Brand Factory stores. The first season, commencing Sep-19, is expected to generate wholesale revenues of approximately GBP0.6m, and be profitable after deducting the cost of the goods sold. In addition, the Brand Factory sales will pass through Koovs' supply chain which will also benefit from the increased volumes. The Brand Factory Contract is valid to 31 March 2022.
In addition to the Brand Factory Contract, the Future Group Strategic Partnership will see the further expansion of retail distribution for Koovs Private label in Central Stores concessions and in new Brand Factory concessions ("Concession Expansion").
As part of the Concession Expansion, Koovs Private label will be rolled out in additional five Central Stores, two in Bangalore and one in each of Hyderabad, Noida, Pune making eight stores in total. This revised agreement signed on 2 July 2019, expands from that signed on 3 October 2018 (as announced on 7 May 2019) and is expected to generate revenue over the next 12 months of c. GBP0.15m and be profitable after deducting the cost of the goods sold and a 30% commission payable to FLFL on the value of goods sold.
The distribution of Koovs Private Label Menswear will also be piloted in three Brand factory stores - Bangalore, Mumbai, New Delhi. This agreement, signed on 15 June 2019 and valid until 31 March 2022, is expected to generate revenue over the next 12 months of c. GBP0.1m and be profitable after deducting the cost of the goods sold. There is no commission payable to FLFL on the value of goods sold.
Mary Turner, Chief Executive Officer of Koovs plc, commented: "The signing of this latest contract with FLFL, to develop a completely new fashion brand, and the further expansion of our Strategic Partnership with Future Group brings more growth opportunities for both parties. We remain convinced of the long term potential for the Indian online fashion market and for Koovs in particular."
Related party transaction
For the purposes of the AIM Rules for Companies ("AIM Rules"), FLFL is a substantial shareholder in the Company and therefore a related party. As such, the entering into the Brand Factory Contract constitut