Koovs plc has confirmed a strategic investment in the Company of $3.4 million (£3.0 million) from HT Media Limited (“HT Media”), through the issue of 12,000,000 New Ordinary Shares at a price of 25 pence per Ordinary Share.
The company will use the funds for investment in marketing and utilise HT Media’s assets to build brand awareness in India and accelerate Koovs’ growth.
HT Media is one of the leading media companies in India and 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.
In line with the Company’s strategy, 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 also announces 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 (“Dragon Asia Holdings”).
The company 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.
Mary Turner, CEO of Koovs commented: “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 $31.9 million (£21.9 million) as part of the initial tranche of the Capital Raising. The investment announced today has 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. 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.