Kooth PLC (AIM:KOO) has reassured on a contract in California and said an article which prompted its shares to fall by over 18% on Thursday was based on “outdated information”.
“The company's contract in California has not changed since it was announced,” Kooth said on Friday, following a report that a director of the state’s mental health commission had worked to prevent cuts which could have removed funding for the deal.
KFF Health News had reported the director, Toby Ewing, travelled to London this summer funded by Kooth and had pushed legislators to maintain the contract.
Kooth noted in a separate statement that Ewing’s visit was part of a long-planned conference and that the article failed to raise “any legitimate concerns regarding Kooth”.
Usage of Kooth’s Soluna mental health app has grown “meaningfully” across California since being introduced in January under the four-year US$188 million (£145 million) contract, the company added.
“Kooth is proud of the impact it has achieved to date in California and continues to deliver on its purpose of building mentally healthier populations, leaving no one behind.”
Shares in the London-based company had fallen by 18.1% to 185p on Thursday.