Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Yes Matt, just consolidating. Everyone taking a breather!
Nothing was bought after hours. There was a 10 minute auction where there were big orders in at 3.2p
1.2 million got filled & this was the UT Uncrossing Trade.
The other trades shown 'after hours' are trades that were done within trading hours, but declared later.
Today we had the third highest volumes ever. Tomorrow should smash this. Can see this in & out of auction tomorrow.
I believe somebody has got whiff of something from either the RBI or one of the brokers (Whitman Howard or Cannacord Genuity) about a placing.
More detailed info is coming out of India regarding the easing of rules on 'Round Tripping' where money leaves India & then comes back in via a different entity ie FLFL funding Koovs, who reinvest back into India.
This is the only thing holding funding up. FLFL have already got the ball rolling with the first small tranche of 28.36p
It is now affecting the economy of India, so they will have to ease restrictions to encourage FDI Foreign Direct Investment.
Anybody with any concerns must read the following article that has not been publishes on lse before.
https://www.firstpost.com/business/economic-slowdown-govt-to-introduce-new-norms-to-ease-restrictions-on-fdi-by-jvs-of-indian-firms-to-boost-investment-7665631.html
Official sources said that the changes would soon be be made in existing overseas direct investment (ODI) Regulations to ease the restrictions and put such investments (FDI and ODI) under the automatic route (without prior approval of RBI).
The changes have become important in the backdrop on slowing of the Indian economy and resultant lack of investment by the corporate sector. The stringent view adopted by the RBI under the objective of preventing 'round tripping' of funds has impacted abilities of certain Indian companies which have made ODI outside India to attract FDI in India even for their group entities, even for legitimate and bona fide business purposes.
A High Level Advisory Group (HLAG)-chaired by economist Surjit Bhalla, on how to increase India's exports, in its report has also suggested sweeping change in FDI regulations with a way to attract funds that go into building businesses in the country.
ODIs include investments done outside India by an Indian by the way of subscription to the memorandum of a foreign entity or purchase of existing shares of a foreign entity either by market purchase or private placement or through stock exchanges, signifying a long-term interest in the foreign entity.
FLFL are using Koovs technology for their successful Brand Factory platform. They are operating 10% returns only!
Koovs have three concessions in Central Malls in & around Delhi. They have another five due to open imminently (H2) & I have been assured that another eight are in the pipeline ; )
After this £6 million cash injection, there will be a Capital Markets Day hosted by the new Chief Creative Officer Christian Westphal. They will then sell their story to raise further funds.
Remember that the presentation will show three excellent Quarters of growth:
Q4 : 67%
Q1 : 104%
Q2 : 100%
It will also show improvements in the relationship with FLFL synergies, more store openings, improved margins, web traffic & social media presence together with better conversion rates.
I am confident of funding being sorted one way or another.
The CEO Mary Turner has lived half her tenure in India, away from her family. She has also sacrificed £200k of her £250k salary every year. I doubt that her friend & Chairman Lord Waheed Alli will let her walk away with nothing!
Jambon has averaged right down & is alive & kicking in the private Twitter group, where members have ben sharing excellent research & topping up too ; )
It was where news re the RBI round tripping & FLFL funding was first shared!
TalygarnTom- Do you still hold a position here?
Not sure why you are conversing with the same person you single handedly exposed as being the multi aliased shorter Pascha
Lord Alli can't take this private, it has £15 million losses a year, does not make sense. He needs it listed to raise cash.
He has put 6 years of his life into this venture & does NOT take a salary. His reputation is on the line & he has tens of millions invested here.
Why let this fail with this temporary 'round tripping' hurdle? It does not make sense.
The funding is there waiting to enter Koovs. Just need the authorisation from RBI.
Remember that FLFL have already invested £10 million here. This delay caused by RBI has turned the FLFL investment into £1 million!! They are £9 million down- so they want funding to go ahead.
It's a bit messy, but I am sure it will be sorted out very soon....
I don't believe this will be the next Boohoo or ASOS, certainly not whilst the current idiots are running it.
If FLFL took full control & used all their synergies to run the business, it would no doubt be profitable within a year.
Koovs have spent near on £100 million in creating the brand, technology & platform & have blamed everything apart from themselves for the collapse, leaving a company worth less then £10 million.
I personally believe that the company is worth more than £10 million
Koovs are absolutely slaying the opposition with their organically grown Instagram figures now totalling 775,000!
They have bloggers & Bollywood stars that have tens of millions of followers between them
https://www.instagram.com/koovsfashion/
https://www.instagram.com/koovsman/
I know it was Strand Hanson that orchestrated the wording of that rns & also the October 21st rns.
As Nomad & a big name in the City, they have a duty to cover themselves. They've put similar caveats elsewhere with Koovs.
Morning donotpanic- after yesterday's consolidation, looking for a recovery today. The drop was massively overdone on an rns that told us that funding hadn't happened yet.
As I said before, the funds are there for FLFL, Kishore Biyani has committed to the funding, just need the RBI to give the ok.
If this drags out, I'm sure there'll be a temporary loan or emergency funding put in place. Why fall at the final hurdle when Koovs is on the verge & India e commerce is on the verge of taking off?
That was an appalling line that the Nomad Strand Hanson were responsible for, covering their backs with that caveat.
The bottom line is that Koovs is in a better position now then it was last week.
FLFL now have £190 million funds & the RBI (Reserve Bank of India) are close to easing rules on 'round tripping'- that caused this whole mess.
Round tripping is where money leaves India, then finds its way back in. RBI just want to make sure this isn't abused ie for tax reasons.
The drop was massively overdone & being released midday, caught a lot out, triggering stop losses etc. I'm sure this'll creep back up.
Lets not forget that Koovs are selling 700 different products in the Middle East via Amazon.ae formerly Souq.com
https://www.amazon.ae/s?k=koovs&ref=nb_sb_noss_1
There is a huge Indian diaspora in the Middle East. Not sure how much they make, but good exposure anyhow.
If Koovs was going to go bust, it would have been last year when it was on its knees, before the FLFL tie up & when sales were falling.
Now sales are up, 67%, 104% & 100% up in successive quarters.
Margins are up
web traffic is up
conversion rates are up
Social Media followers are massively up
Bollywood stars wanting to wear Koovs gear is up
Koovs now have the biggest retailer in India helping them.
That is why I believe that funding in one way or another will be sorted in the next few weeks.
Official sources said that the changes would soon be made in existing overseas direct investment (ODI) regulations to ease the restrictions and put such investments (FDI and ODI) under the automatic route (without prior approval of RBI)
So it looks like the RBI will not object to this route of funding!
We also have Blackstone funding FLFL to the tune of £190 million.
FLFL have no excuses now : )
HOT OFF THE PRESS, OUT OF INDIA TODAY
Massive news for Koovs where restrictions will now be eased & RBI approval will NOT be needed!!
https://www.thenewsminute.com/article/govt-may-ease-restrictions-fdi-joint-ventures-indian-companies-112484
In a bid to ease the flow of foreign funds into legitimate business activities, the government may soon ease restrictions on foreign direct investment (FDI) by joint ventures (JVs) or wholly-owned subsidiaries (WOS) of an Indian company without categorising such investments as "suspect" involving 'round tripping' of funds.
The existing legal framework under FEMA does not permit FDI by an overseas JV or WOS of an Indian party without the prior approval of RBI. Similarly, there are restrictions on Indian entities to undertake overseas direct investment (ODI) in a foreign entity which already has existing FDI investment structures in India.
Official sources said that the changes would soon be made in existing overseas direct investment (ODI) regulations to ease the restrictions and put such investments (FDI and ODI) under the automatic route (without prior approval of RBI).
The Blackstone £190 MILLION investment in FLFL caused the rise.
Koovs must have been bombarded with emails asking why the share price had risen. Maybe they had to release this rns to calm the market because nothing has changed in the last week re funding.
I've said before that the Blackstone injection is just a third of the equation. RBI approval is another factor, then finally if FLFL actually honour the deal.
If FLFL/ RBI continue to mess about, then Lord ALLI will have to stump up the interim cash.
I wrote this on here & the private Twitter Koovs group last week, before the herd arrived. Hope it helps.
FLFL are COMMITTED to the 28.36p placing, that is why they paid the first tranche of the 28.36p placing.
It looks like something got flagged up by RBI, even though they have allowed previous cash to go through.
They have just asked FLFL to reapply.
Yes, this could several weeks, but Alli will not let this go at this stage.
Why would he take it private with losses of £15 Million a year? That would be a massive headache for him.
He wants to keep it public.
I am also sure that he does not want to stitch up the CEO Mary Turner, who has given up £200k of her salary every year & has spent the last 4 years mainly away from her family travelling to India.
FLFL do not want this to fail. They are 9 Million GBP down on their 10 Million GBP investment- not a good look in India & all down to funding woes.
I am sure that KIshore Biyani is in extensive talks with RBI.
As a last resort, let us not forget that Lord Waheed Alli is worth 212 Million GBP
There is a reason Bollywood stars are queuing up to wear Koovs gear.
After 6 years, they have finally created a niche brand in India with a massive organically grown social media following.
I First posted this major news on the Private Koovs Twitter group yesterday.
FLFL are now fully funded with £190 million
FLFL just need to wait for RBI approval before any more 28.36p tranches are authorised. This will give a blended price of 15p.
We just have to wait & see, but a lot of great information is being shared within the group.
The amount of Bollywood stars with millions of followers on Instagram wearing Koovs gear has massively increased- not the sign of a struggling company!
Remember that FLFL have already payed the first instalment (admittedly only £250,000) & were due to pay the rest, but the RBI asked them to reapply.
This could take some time, but if authorised, this should go back into double figures.
The drop was massively overdone. Koovs have invested near on £100 million into the brand, technology & platform. The market cap of £10 million is not a true representation of the true value.