11th Jan 2016 11:59
LONDON (Alliance News) - Koovs PLC on Monday said it will raise GBP4.5 million through the issue of 17.8 million shares at 25.00 pence each to back further marketing activity.
The Indian online fashion retailer said it will invest the money in increased marketing and broadening the product range as well as for funding working capital.
The raising comprises subscriptions by Nextwave Ventures and Chairman Waheed Alli for 14.8 million shares, and a placing with an institutional investor of 3 million shares. Peel Hunt LLP is acting as nominated adviser, broker and sole bookrunner.
Of the 14.8 million shares, Alli will subscribe for 5.6 million, meaning he and his wholly-owned company Silvergate Investments Ltd will have an interest in 12.9 million shares, representing 29% of Koovs' issued share capital.
Nextwave Ventures, a company connected to Koovs Non-Executive Director Anant Nahata, will subscribe for 9.2 million shares, following which Nahata and his connected persons will be interested in 12.8 million shares, representing 29% of the company's issued share capital.
Michinoko Ltd is subscribing for the remaining 3 million shares, giving it 7.6 million shares representing 17% of Koovs' issued share capital.
"We are already seeing the initial impact of our investment in marketing to build the Koovs brand. With targeted media and a standout creative we are achieving very good results. We will be building on this momentum in the next phase of our marketing campaign and look to continue accelerated growth into 2016," Chief Executive Mary Turner said in a statement.
Earlier on Monday, Koovs said its sales tripled in the final months of 2015, boosted by its newly-launched marketing campaign. Sales in the period from September 28 to January 3 rose to GBP3.0 million, slightly more than triple the amount made a year earlier.
The company also noted earlier on Monday that it was in the final stages of agreeing the GBP4.5 million fundraising, which has now been finalised.
Shares in Koovs were trading up 2.1% at 24.00 pence on Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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