Guvera teeters on the brink after ASX refuses listing
Advertising-funded music streaming service Guvera has been dealt a potentially lethal blow with the Australian Securities Exchange refusing it permission to list.
The decision by the ASX means Guvera will no longer be able to run its planned initial public offering with which it aimed to raise $80m.
This afternoon’s announcement that the ASX has decided not to allow the float to go ahead leaves Guvera with no obvious means of continuing to trade given its high levels of debt.
Mumbrella nailed it with your article of three years ago which saw Guvera already unravelling then. https://staging.mumbrella.com.au/struggling-music-service-guvera-relaunches-133832
This past couple of weeks AFR also dissected the corpse before it could be sold as filet mignon rather than offal. A lot is about to come out.
The damage was done when Guvera were forced by ASIC to reissue the prospectus. One of the biggest revisions? The removal of the reference to Guvera having 14 million users…
Tim, I’d be asking some serious questions of the brands and the media agencies that put money into partnerships with Guvera. There’s some big advertisers listed as partners. Yet while ASIC was uncomfortable with the 14m user figure – advertisers and media agencies were not. Suggests a lot about our industry’s standards..
How is it possible to only take 1.2 million on circa 15 million users?
Something doesn’t add up.
I’m an extremely nervous investor and I fear the worst is to come, Guvera has a great product but fails to market itself properly, has stupid restrictions for users that turn people away, it markets itself as free but after two weeks the service becomes crap unless you either use 10 hours min or subscribe, that’s one issue,
There’s so many other things such as the spin and hype, stretching the truth, lavish conferences at the Versace all designed to build confidence, very very angry investor indeed
@Richard Kratockwil I do feel sorry for the sophistacted investors and SMSFs who have been sold up the river by their accountants and financial advisers. The “business” looks like smoke and mirrors. If you can’t even make 10c a year out of a registered user, you have a huge problem…. You really have to wonder how many legitimate users the platform has now let alone ever had.
@closing act – I don’t think agencies were duped given the income was just over 1m and most of the advertisers listed most likely were small trial/test investments. Agencies have known this was a dog from the day it arrived 7 years ago.
I am absolutely astounded to read in AFR “… network of accountants that convinced thousands of self-managed super fund investors to pour their retirement savings into loss-making online music streaming business”
Small SMSF investors have no business at all investing in loss-making music streaming services. Unless the intention is to lose their money. Absolutely amazing.