Roy Jacobs & Associates Investigating NexCen Brands, Inc. for
Possible Securities Law Violations
(Lawfuel) – Roy Jacobs & Associates announces that it is investigating possible securities violations relating to today’s announcement by NexCen
Brands, Inc. (“NexCen” or the “Company”) (Nasdaq:NEXC), that revealed
that an amended loan agreement entered into in January 2008, which
provided funding for the Company’s acquisition of Great American
Cookies, contained a provision requiring that the Company repay $30
million of the borrowing by October 17, 2008. This was not revealed in
disclosures made on January 29, 2008, announcing the amended loan
agreement, or in the Company’s Annual Report on Form 10-K dated March
In addition, the Company now believes that a “going concern” warning is
appropriate, viz. that there is substantial doubt about the Company’s
ability to continue as a going concern, and that this substantial doubt
may have existed at the time of the filing of the Company’s Form 10-K.
Upon announcement of this completely unforeseen adverse news, NexCen’s
shares dropped over 76% percent in heavy trading, wiping out the
majority of the shareholders’ value.
If you purchased NexCen stock from January 30, 2008 through and
including May 16, 2008, and are interested in discussing your rights
free of charge, please contact Roy L. Jacobs. Mr. Jacobs will speak
with you personally at no cost or obligation.