Fashion retailer Nairobi Business Ventures (NBV) #ticker:NBV is set to raise more capital in the form of convertible debt, the Nairobi Securities Exchange-listed firm announced late Friday.
The company did not say how much it intends to raise, having previously blamed its losses on delayed funding.
“The board approved the issuance of a convertible debt to raise additional capital for the company, by way of a convertible debt, in such a manner and from such person or persons and on such terms and conditions in all respects and at such a time as the board may deem fit, subject to the requisite approvals,” NBV said in a statement.
The owner of the K-Shoe brand added that it has hired ABC Capital as its nominated advisor to work on the transaction documents. The company earlier said new loans could be provided by its major shareholders.
If issued, the convertible debt could see providers of the new capital acquire shares in the company in the future as they accrue interest in the interim period.
Loss-making NBV has blamed its performance on several factors including a delay in securing additional capital to finance its working capital requirements and weak consumer spending.
The company reported a net loss of Sh14.9 million in the half year ended September, reversing net earnings of Sh1 million a year earlier.
Sales collapsed to Sh8 million from Sh34.6 million in the same period when administrative and other operating expenses increased, contributing to the loss.
The company’s stock traded at Sh2.9 on Friday, 42 per cent below its listing price of Sh5 in June 2016.
NBV operates six outlets in Nairobi – two in the CBD and one each at Village Market, T-Mall, Capital Centre and Ongata Rongai under the KShoe brand which targets the upper middle class market.