18 Nov 2019 13:19
18 November 2019
Koovs plc
("Koovs" or the "Company")
Further update on FLFL Subscription
Koovs plc (AIM: KOOV), the Western fashion experts for online Indian consumers, announces that, further to the Company's announcements on 21 October 2019 and 29 October 2019, the Company remains in discussions with Future Lifestyle Fashions Limited ("FLFL") regarding the completion of the outstanding c. £6.5 million investment into Koovs.
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.
Alongside its discussions with FLFL, the Company is actively considering all other financing alternatives available to it. The Company currently has cash reserves of c. £2.2 million which is sufficient for the current calendar year. As noted previously, the Board has implemented certain cash conservation measures, primarily in relation to reducing stock purchases and marketing spend, with the intention of ensuring there is the maximum time available for the various options available to the Company to be considered. Shareholders should be aware that in the event that the Company is unable to secure the further funding from FLFL or through alternative sources, it may no longer be able to trade as a going concern.
The Company will provide a further update to the market as soon as possible.
END
For further information please contact:
Koovs plc
Mary Turner / Robert Pursell
company.secretary@koovs.com
Strand Hanson Limited (Nominated & Financial Adviser)
James Harris / Ritchie Balmer / Georgia Langoulant
Tel: +44 (0) 20 7409 3494
Canaccord Genuity (Joint Broker)
Georgina McCooke / Alex Aylen
Tel: +44 (0) 20 7523 8000
Whitman Howard Limited (Joint Broker)
Nick Lovering (Corporate) / Mark Murphy (Institutional Sales)
Tel: +44 (0) 20 7659 1260
Media enquiries:
Newgate Communications
Clotilde Gros / Adam Lloyd
Tel: +44 (0)20 3757 6880
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No.596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
Notes to Editors:
About Koovs
·; Koovs is a UK business that has built KOOVS.COM into India's leading online western fashion destination. Koovs' fashion brands are designed and developed in London exclusively for the young Indian fashion market where two thirds of the population are under the age of 35. It has 2.7m following and half a million active customers.
·; The tremendous potential of the Indian fashion market has been further underlined by the Strategic Partnership with Future Lifestyle Fashions Limited (FLFL) which is part Future Group - one of India's leading retail businesses and one of the top 10 fashion apparel companies in the world
·; Koovs' proprietary online technology platform powers KOOVS.COM and is a proven market-leading success in India's rapidly expanding e-commerce market. The capability and scalability of the platform has been recognised by FLFL which has contracted Koovs to build and maintain the online platform for its Brand Factory retail format. For more information, please visit www.koovs.com and follow us on Facebook, LinkedIn, Twitter @mykoovs and Instagram @koovsfashion.