Hey, here’s a rare thing, some good news for Guvera. The beleaguered streaming music company is going to get almost $2 million as part of a share buyback by another start-up.
As previously reported, following a disastrous attempt last year to float on the Australian stock market – which resulted in it bailing on various markets and putting two subsidiaries into administration – Guvera finally went offline worldwide in May. Having now shut down in all the territories where it operated, Guvera now exists as a company with no product or customers.
The new cash comes from video messaging app Kwickie, which is itself loss-making but still in that start-up period when investors are willing to throw money at it. Guvera was a shareholder in Kwickie. And earlier this month, the latter firm’s shareholders voted to buy back $1.98 million of shares from the former.
According to Australian newspaper The Courier-Mail, this is an “extremely rare” move by a start-up, but one that will be welcome for the struggling Guvera company.
The two companies do have a link, in that Guvera co-founder Darren Herft is also chair of Kwickie. However, the latter has stated that he was not involved in the planning or execution of the buyback process.
Herft, who has reportedly now relocated to the UK, is also a link between the two companies and investment firm Amma Private Equity, which raised finance for the digital start-ups.
The methods Amma used to raise funds for Guvera are now being looked into by Australian authorities, with lawyers possibly poised to launch a number of class action lawsuits involving angry investors.[from http://ift.tt/2lvivLP]