Global-e maimed
Any chances Global-e Investments had of relaunching its bonus bond-cum-e commerce investment have been scuppered by mass staff resignations.
Chief operating officer Philip Markwick and three other staff have resigned from the company for personal reasons, and marketing manager Jane Malone is currently working out her notice.
Global-e went to the market in the first quarter last year hoping to raise at least US$25.6 million in its bond issue, which included daily and monthly prize draws.
The offer was pulled off the market in July after it failed to sell 25,000 of its US$1060 bonds and the money was refunded to investors.
Despite being pulled off the market Global-e hoped to raise US$10 million to recapitalise the company and finance a relaunch.
Chief executive Damian Archbold said in the company's annual report late last year that Global-e was "on the verge of a major breakthrough which will create the momentum necessary to successfully relaunch."
He goes onto say that Global-e had received a letter of intent from an unnamed American company that would involved "a new shareholder funding the company's requirements."
However, auditors Gosling Chapman say it is unable to verify the US company will carry out that intention.
It says Global-e "would not be able to continue in operational existence for the foreseeable future" if the money isn't raised. Gosling Chapman goes on to say that about $US500,000 would be needed "for future losses and other liabilities, such as redundancies, which would arise as a result of the company ceasing activity."
In the year ending March 31, Global-e reported a loss of $3.02 million on revenues of $47,000. Net assets stood at $11,832 at balance date, three weeks after the bonds went on sale.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
