Kin Wellness (formerly Fitbug) suspends trading after fundraising agreement pulled

 
Alys Key
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It's been a long turnaround process for the company (Source: Getty)

Beleaguered fitness company Kin Wellness, formerly known as Fitbug, has suspended trading on its shares on Aim, after a note issue agreement was halted.

The digital wellness provider announced that Belastock Capital had decided not to proceed with buying three further tranches of loan notes from the company, after Kin's share price fell below 0.1p.

This comes just months after the initial agreement in May, which was set to raise £1.1m for Kin in four tranches across three years.

The first set of notes was issued on 15 May this year with a nominal value of £350,000. But Belastock has decided not to go ahead with the remaining three installments.

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The share price fell below 0.1p at close of trading on 12 June, breaching the conditions of the loan issue, but Kin said at the time that "Belastock has confirmed its ongoing support for the Company and that it is the current intention of Belastock to subscribe for the remaining tranches of the Notes as previously outlined."

But Belastock has now said it will not continue the plan, leaving Kin with an unexpected cash shortfall.

The board said it is in dialogue with the company's largest shareholder NW1 and other parties to raise additional funding.

But this morning it suspended trading of its shares on Aim, "pending clarification of its financial position.

This is not the first time the company has taken this action, having suspended trading after announcing a new deal in January.

It has been in an extended period of turnaround since the end of 2015, after the Fitbug device struggled to live up to hype and compete with rivals like Fitbit.

In April it changed its name from Fitbug to Kin Wellness after it shifted focus to providing corporate digital wellbeing and scrapped its consumer business.

Read more: Jog on: Fitbug is no more as it runs away from retail

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