Flailing design social network Kabuni ponders a new life
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Interior design marketplace Kabuni might not have much left in the tank, but investors are still hopeful.
The shares jumped 50 per cent on Thursday, prompting a ping from the ASX.
Kabuni (ASX:KBU) — soon-to-be rebranded Serpentine Technologies (ASX:S3R) — climbed from 0.6c to 0.9c before closing up 17 per cent at 0.7c.
The tiny $3.6 million company has for the past nine months been negotiating the sale of its business into Vancouver-based Print the Future which specialises in 3D-printed designer furniture.
Print The Future and Kabuni were both founded by Mr Neil Patel (not to be confused with the British-born marketing guru of the same name).
The $3.7 million deal was due to be settled at the end of last month — but difficulties with finances have apparently left the deal hanging in the balance.
Print The Future (PTF) failed to pay a promissory note worth $3.7 million on November 30, when it fell due, Kabuni told investors earlier this month.
“PTF continues to pursue a number of funding options including discussions with investment banks, private equity, high net worth individuals and institutional funds in Canada.”
“While discussion are progressing with various parties they remain conditional and incomplete at this time.”
Kabuni banked only $1000 in sales last quarter, but kept its cash burn to $133,000 — leaving $268,000 in the kitty.
Pending the success of the transaction, Serpentine would own just one digital asset – a training platform for designers called Design Campus.
Kabuni would then look for development opportunities for the site, as well as “acquisition opportunities across all sectors, including technology, that will add value for shareholders”.