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.
