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Published
Apr 19, 2018
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Koovs share price is back down after shock surge

Published
Apr 19, 2018

Shares in online fashion retailer Koovs went back into decline on Thursday after rising sharply this week for no apparent reason. The under-pressure retailer even resorted to issuing a specific statement saying it had no explanation for the share price rise.


Koovs



The firm’s share price has been volatile for some time as the company’s business progress has disappointed investors and as it has taken longer than hoped for to raise additional finance.

The shares were up as much as 60% at one point and along with the statement earlier this week saying it couldn't understand that move, Koovs also said that it is about to raise an additional £1.5 million pounds in funding.

It expects shortly to announce that it has secured the interim funding via a loan from Lord Waheed Alli, who is one of its directors. This will provide it with cash resources until the end of August. 

Sudden share price spikes often come along with takeover speculation or news of major funding, but a cash injection of £1.5 million certainly doesn’t come into the ‘major funding’ category.

However, this week the board also said it “actively continues the previously announced dialogue with potential new investors in respect of [its] £50 million funding requirement and will update the market in due course.”

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