LONDON - Kooth plc (AIM: KOO), a company specializing in digital mental health services for youth, announced today that the State of Pennsylvania has initiated the termination of its pilot contract with the company. The contract, which was originally set to run through June 30, 2024, and later extended to June 2025, will now be subject to a 30-day notice period as per the State's decision.
Shares of Kooth plunged 17.7% in late-date trading amid the news.
The pilot contract, established on October 11, 2022, was part of Kooth's expansion efforts in the United States. The recent communication from the State has left the future of Kooth's operations in Pennsylvania uncertain, prompting the company to seek urgent clarification on the matter.
Despite this development, Kooth's Board has stated that its expectations for the fiscal years 2024 and 2025 are unchanged. The company has not provided further details on the reasons behind the State's decision or the potential implications for its services in Pennsylvania.
This announcement is based on a press release statement from Kooth plc. The company, which has positioned itself as a global leader in the field of digital mental well-being for young people, will be addressing the situation with the State to determine the next steps for its operations in the region. As the situation develops, stakeholders will be looking for more information on how this will affect Kooth's presence in the U.S. market and its overall strategic objectives.
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