GUVERA REGROUPS AS SHAREHOLDERS PLEDGE SUPPORT

Written on the 24 June 2016 by Laura Daquino

GUVERA REGROUPS AS SHAREHOLDERS PLEDGE SUPPORT

GUVERA says it has 'overwhelming' support from its 3000 shareholders still, following a week of shareholder meetings in Melbourne and Sydney.

This comes after the Australian Securities Exchange (ASX) rejected Guvera's proposal to raise up to $80 million from investors in a controversial IPO.

In the 12 hours prior to this move, Guvera had issued a replacement prospectus with the Australian Securities and Investments Commission (ASIC) and appeared ready to list on the ASX on July 16.

Guvera's new prospectus had included 45 changes from the original prospectus issued in early June, among them an increase of minimum subscriptions by $10 million to $40 million, based on the loss-making company's viability going forward.

The ASX has offered no reasons for opposing Guvera's public float, arguing that specific reasons remain confidential.

Guvera CEO Darren Herft (pictured right) told Business News Australia that more than 300 shareholders in Melbourne and a couple of hundred shareholders in Sydney showed 'overwhelming faith in the business' at shareholder meetings this week.

Herft says the company hasn't lost any of its 20 key shareholders, who 'all unanimously' gave their support.

"They wanted to understand a little more about the ASX decision, and more than anything else, how we are moving forward to financially fix the company," says Herft.

"We have a lot of support and faith in the strategy and what we're doing, but there's obviously some areas we need to improve on as well.

"We are holding more meetings today and there will definitely be some heavy restructuring involved, which we can't comment on until we have executed.

"Essentially though, Guvera will have a much bigger focus on its emerging markets where we are already operational and doing well. More of a focus on international markets, looking at ways to be more of an international company and operate overseas rather than here in Australia."

Herft believes the ASX blocked Guvera's proposal because it was 'too ambitious' as a company.

Guvera met with the ASX for about an hour 'just to disband' on Tuesday.

"If it was a smaller raise, we were coming off a smaller loss and had smaller ambitions, we suspect based on meeting with the ASX that we would have got underway," says Herft.

"We feel like we have been penalised for taking a much more strategic and significant view to investment in the company in the early years, to ultimately have a much more successful company going forward.

"Maybe if we opened the doors and took revenue immediately, it would have been different. We are accepting the ASX has final decision though and just need to focus on moving forward."

Guvera will be meeting with more shareholders in Brisbane at 3pm today.

The company will announce more about its restructure over the next few days.

Hear more from Guvera:


Author: Laura Daquino Connect via: Twitter LinkedIn

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