Global-e's relaunch plans scuppered
Global-e Investments plans to raise $25 million and relaunch its bond product have been hit by sweeping staff resignations.
Thursday, February 1st 2001, 6:41AM
Any chances Global-e Investments had of relaunching its bonus bond-cum-e commerce investment have been scuppered by mass staff resignations this week.
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.
Good Returns understands the only people left in the business are chairman and chief executive Damian Archbold and his secretary.
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.
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.
Global-e also ran into a barrage of unfavourable press comment.
Despite being pulled off the market Global-e hoped to raise US$10 million to recapitalise the company and finance a relaunch.
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 onto say that about US$500,000 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.
You can read Philip's blog here: http://www.goodreturns.co.nz/blog/
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