GOOD GLAMM SAYS IT HAS COMPLIED WITH ALL PAYOUTS AMID REPORTS OF DEFAULT ALLEGATIONS BY SIRONA INVESTORS
Direct-to-consumer (D2C) unicorn Good Glamm Group on April 22 asserted that it is in compliance with its contractual obligations and payouts to promoters amid media reports that an investor in women's hygiene brand Sirona has sent a ‘notice of default’ to the company’s board.
‘’The Company is in compliance with its contractual obligations and payouts to the promoters are in accordance with the contractual terms,” the Good Glamm Group told CNBC-TV18 in a statement.
Good Glamm Group’s comment comes a day after startup news outlet The Arc reported that Indian Angel Network (IAN), an investor in Sirona, sent a notice to the Group's board on April 18 alleging it defaulted on its final payment obligations to the acquired company's shareholders.
The group, however, refused to comment on any specifics since it’s bound by “confidentiality obligations.”
Earlier in December 2021, according to sources cited by The Arc, the Good Glamm acquired a majority stake in Sirona for ₹100 crore and was due to pay Sirona's shareholders, including its employees, by December 2023.
“This payout was structured as a mix of a fixed amount and performance-based earnout, subject to due diligence. Sirona closed fiscal 2023 at ₹77 crore topline. Good Glamm was supposed to acquire the remaining final stake from investors, founders, and employees by March 2024, which has not been paid as yet,” the report claims.
According to the report, including the payment due to Sirona's investors, the Good Glamm group has dues left to the tune of ₹150 crore across its acquisitions.
However, sources have told CNBC-TV18 that the firm has already raised enough capital for an initial public offering (IPO). They added that the company will likely close an additional $30-$40 million in the next few months. The fundraising would be ahead of the IPO.
Earlier this month, Darpan Sanghvi, Group Founder and CEO had said his firm targets listing on the stock exchanges by Diwali 2025
Indian Angel Network is yet to respond to CNBC-TV18’s queries.
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2024-04-22T07:53:37Z dg43tfdfdgfd