29th May 2019 10:58
LONDON (Alliance News) - Koovs PLC said Wednesday it has received GBP3.7 million as first tranche of its funding deal with Future Lifestyle Fashions Ltd.
Shares in Indian online fashion website Koovs were up 33% at 8.20 pence in morning trade.
Following the first GBP3.7 million tranche of 45.8 million shares at 8p per share, Future Lifestyle Fashions has subscribed for another 24.0 million share second tranche of compulsorily convertible preference shares at 28.36p each for a total of GBP6.8 million.
This equates to a GBP10.5 million total investment by Future Lifestyle Fashions at an average share price of 15p each.
Koovs has applied to admit the 45.8 million first tranche shares, which will increase its share capital to 401.9 million shares.
The issue of the second tranche is conditional upon shareholder approval and the necessary general meeting will be convened "shortly". Provided approval is granted and the convertible shares are issued, the convertible shares will automatically convert to 24.0 million ordinary shares 12 months after they are issued.