Koovs continues to be in discussion with other investors in order to close the current funding round by June 30, 2016
BestMediaInfo Bureau | Delhi | June 9, 2016
Lifestyle e-commerce firm Koovs Plc has confirmed a strategic investment in the company of Â£3 million (before expenses) by HT Media Limited, through 1.2 crore new ordinary shares at a price of 25 pence per ordinary share.
HT Media owns the Hindustan Times broadsheet newspaper among 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 Koovsâ€™ strategy, the funds will be used for investment for marketing and Koovs will continue to use the assets of HT Media to build brand awareness in India and accelerate Koovsâ€™ growth.
Koovs also announced an investment of Â£300,000 (before expenses) through the issue of 12 lakh 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 June 30, 2016. Koovs will update the market, as required, in due course.
Mary Turner, CEO of Koovs, said, â€œThis 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 Indiaâ€™s number one western fashion destination in India by 2020."
Details of the Capital Raising:
As announced on April 29 2016, the company raised gross proceeds of Â£21.9 million as part of the initial tranche of the capital raising. The investment announced it has raised gross proceeds of a further Â£3.3 million through the issue of 1.32 crore 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 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. 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.