ASIC investigating Guvera’s “missing millions”

The Australian Securities and Investments Commission (ASIC) has begun investigations into the Gold Coast-based streaming company Guvera, which ceased operations in May.

ABC-TV’s 7.30 says that the corporate watchdog wants to find out what happened to the $180 million that 3000 investors ploughed in after being promised massive returns.

In 2008, when Guvera set up, an early prospectus stated, “Underpinned by a revolutionary business model and technology, Guvera aims to deliver a real solution that allows worldwide consumers free access to digital entertainment content.”

Despite the fact Guvera had no revenue or product, it raised $180 million almost immediately.

There was great excitement at the time by investors that the digital revolution would pay out large dividends.

Guvera’s executives had a marketing flair which saw them raise cash quickly and in large amounts. But Guvera was burning through $6.6 million a year as it tried to find a foothold on the global digital marketplace.

The current affairs show revealed that ASIC has already begun interviewing investors.

It is trying to build up a case that Guvera’s marketing may have contravened sections of the Corporate Act that protects inexperienced investors, and also at what sort of incentives the tech company offered accountants to refer their clients.

7.30 contacted Guvera’s co-founder and Chief Executive Officer Darren Herft (who was on a $264,000 a year salary) to speak on camera.

He declined but sent them an email to say Guvera had not “abandoned” its shareholders. “We have a platform and access to music rights and a company to fix for 3,000 people,” he responded.

After being stopped last year from listing on the Australian Stock Exchange, Guvera apparently still intends to list in Macedonia.

Photo viaB&T