In Thursday’s trading session, KBS Fashion Group Limited (NASDAQ: KBSF) rocketed by 31.30%, a rise equivalent to $1.13 from its previous market close price. KBSF stock reached its lowest point during the trading session at $3.71, while the highest point of the day was $4.80.
Barchart calculated that KBS Fashion stock closed the previous session at $3.61 while 0.65 million shares were traded. It has been a while since there were any current developments, but these recent developments can provide greater insight about the strategic moves the KBSF is taking.
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Recent developments:
Through its subsidiaries, KBS Fashion Group Limited, based in Shishi, China, designs, manufactures, sells, and distributes menswear. The KBSF offers its own casual menswear brand through multiple stores including 30 KBS stores. Luxventure, the social media platform operated by KBS Fashion, is one of the largest fashion platforms in the country.
It was announced this month that KBS Fashion had authorized and declared one dividend right for every outstanding share of its common stock.
- Stockholders of record on March 31, 2021, were given the right for each common stock of par value $0.0001 of the KBSF share.
- A Preferred Stock Rights Agreement with American Stock Transfer & Trust Company, LLC, as rights agent, dates as of March 11, 2021, and contains all the terms and conditions relating to the Rights.
- A binding Memorandum of Understanding (MOU) regarding an exempt private offering of convertible preferred stock in the amount of up to $1,500,000 to a single investor was also approved in last month by KBS Fashion’s Board.
- Through this MOU, the investor will be able to acquire up to 100,000 shares of convertible preferred stock at a price of $15 a share.
- A conversion ratio of 15 shares of common stock to each share of preferred stock is set for the preferred stock.
- There will be a two-year lock-up agreement on all common stock issuable upon conversion of the preferred stock.
Conclusion:
In addition to generating enough money for KBS Fashion (KBSF), the exercise of dividend rights and issuance of preferred shares will also strengthen the sentiment of investors in the KBSF stock.