Our opinion on the current state of BKI

Previously called Imbalie, Buka is a beauty franchisor which operates through 150 salons and retailers. It sells its own health and beauty brands. It has 3 types of franchises - Placecol, Dream Nails and Perfect 10. The company is in the process of delisting from the JSE. The company was granted a COVID-19 loan from ABSA bank on condition it de-listed from the JSE - which it is in the process of doing. In its results for the six months to 31st August 2023 the company reported a headline loss of 11,73c per share compared with a loss of 6,72c in the previous period. The company's net asset value (NAV) has fallen from 40,63c per share to just 7,61c. The company said, "Buka has failed to comply with section 3.26 of the JSE Listings Requirements which requires a cash shell, within six months after classification as such, to enter into an agreement and make an announcement relating to the acquisition of viable assets that satisfy the conditions for listing in terms of the JSE Listings Requirements. Consequently, the JSE suspended Buka’s listing with effect from 24 February 2023". From 6th July 2022 the company has been on the Alt-X of the JSE under the new name Buka Investments (BKI), however it remains suspended. To us it looks like this penny stock is dying.