Kogan directors, Ruslan Kogan and David Shafer have reportedly sold six million shares, after their recent botched sales attempt caused a 13 percent drop in the company’s share price.
According to the statement, the directors went through with the sale due to “personal financial commitments”.
Since the announcement was released on Wednesday morning, the company’s shares have dropped 2.8 percent to $7.63.
Kogan.com claims that both Kogan and Shafer are still fully committed to the business, and “continue to have the vast majority of their personal wealth” invested in the company.
This news comes after the duo attempted to offload 11 million shares for $100 million last week, but the sale didn’t proceed because the directors did not receive an “acceptable” offer.
The initial sale attempt came after the company’s shares surged 7.5 percent by the close of trade on Monday, June 4 after the e-commerce giant announced its plan to enter the whitegoods and built-in kitchen appliance market. Both Kogan and Shafer are known for selling shares, with Kogan already reducing his stake in the company by $50 million in shares via Canaccord Genuity to institutional investors in February this year. The February sale came after both Kogan and Shafer sold a $20 million stake for $3 a share in August 2017, and a further $23 million at $4.25 a share in October 2017.
Despite the escalating number of shares being sold by the two directors, Motley Fool analysts believe the assurance that each director is still committed to Kogan.com will be enough to appease shareholders for the time being.
“On this occasion…and due to the significant amount of personal wealth the directors have tied up in the company, both have interests firmly aligned with shareholders”.
No details have been released revealing how much the shares were sold for, and it’s still unclear whether the duo sold six million shares each or a combined six million shares.