Koovs confirms strategic investment by HT Media
The funds will be used for investment in marketing and Koovs will continue to use the assets of HT Media to build brand awareness in India and accelerate Koovs’ growth
Koovs plc has confirmed its strategic investment in the company of £3.0 million (before expenses) from HT Media Limited through the issue of 12,000,000 new ordinary shares at a price of 25 pence per ordinary share. The funds will be used for investment in marketing and Koovs will continue to use the assets of HT Media to build brand awareness in India and accelerate Koovs’ growth
HT Media owns the Hindustan Times broadsheet newspaper amongst other media channels covering print, radio, digital and events. HT Media is recognised for investing in digital companies with strong growth prospects in India.
Koovs also announced an investment of £300,000 (before expenses) through the issue of 1,200,000 new ordinary shares at a price of 25 pence per ordinary share to Dragon Asia Holdings Pte Ltd. Koovs continues to be in discussion with other investors in order to close the current funding round by 30th June 2016. Koovs will update the market, as required, in due course.
Commenting on the development, Mary Turner, CEO of Koovs said, “This investment shows further momentum in our Capital Raising and supports our focus on marketing in order to accelerate brand awareness and sales growth for Koovs in India. Our ambition remains to become India’s number one western fashion destination in India by 2020."
Details of the capital raising
As announced on 29 April 2016, the company raised gross proceeds of £21.9 million as part of the initial tranche of the Capital Raising. The latest investments have raised gross proceeds of a further £3.3 million through the issue of 13,200,000 New Ordinary Shares at a price of 25 pence per Ordinary Share ("Second Tranche"), ("Second Tranche Shares").
The Second Tranche comprises investments by HT Media and Dragon Asia Holdings. The Second Tranche Shares represent approximately 10.0 per cent of the existing issued share capital of the Company. The Second Tranche is conditional upon admission becoming effective. Application has been made for the Second Tranche Shares to be admitted to trading on AIM. Admission and dealings in the Second Tranche Shares is expected to take place at 8.00 a.m. on 10 June 2016.
Following admission, the company will have 145,683,691 Ordinary Shares in issue (there are currently no shares held in treasury) ("Enlarged Issued Share Capital"). The New Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares. The total number of voting rights in the Company will therefore be 145,683,691.
Following their subscription for New Ordinary Shares in the Second Tranche, HT Media will hold a total of 12,000,000 Ordinary Shares representing 8.2 per cent of the Enlarged Issued Share Capital and Dragon Asia Holdings, having subscribed for 1,200,000 New Ordinary Shares in the Second Tranche, will hold a total of 28,000,000 Ordinary Shares representing 19.2 per cent. of the Enlarged Issued Share Capital.
Dragon Asia Holdings is connected to Nextwave Ventures Pte. Ltd. (“Nextwave Ventures”) and, following the subscription for New Ordinary Shares by Dragon Asia Holdings, they will together have an interest in 37,200,000 Ordinary Shares which will represent 25.5 per cent of the Enlarged Issued Share Capital. For the purposes of the City Code on Takeovers and Mergers, Anant Nahata, Exicom Tele-Systems (Singapore) Pte. Ltd., Nextwave Ventures and Dragon Asia Holdings are deemed to be a concert party shareholder in the Company (the "Concert Party"). Following the Second Tranche, the Concert Party will have an interest in 40,822,283 Ordinary Shares which will represent 28.0 per cent of the Enlarged Issued Share Capital.For more updates, be socially connected with us on
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