NEW YORK, May 19, 2008 (PRIME NEWSWIRE) -- 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 20, 2008.
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.