Kooth slides on Pennsylvania contract uncertainty

18th Oct 2024 11:43

(Sharecast News) - AIM-listed Kooth slumped on Friday after saying it had received a communication from the state of Pennsylvania regarding the right to terminate its first pilot contract.

The contract, which was signed in October 2022, was intended to run until 30 June 2024 but was subsequently extended to June next year while negotiations on a new contract were ongoing.

"From this latest communication, the status of Kooth's work in the State going forward is unclear and therefore the company is urgently seeking clarification," it said in a brief statement.

Kooth - an online mental wellbeing community aimed at young people - said its expectations for 2024 and 2025 remain unchanged.

The contract includes the right to terminate with a 30-day notice period.