So far as I understand your two quoted paragraphs, they mean that GCN has exchanged two chunks of GCN's interest in uctv.fm. The two chunks are valued at $81.65 million.
Presumably ASIC will ask Priority One why such a massively valued asset has, up to now, generated virtually zilch in income for GCN. If one assumed a 5% return on that value, then GCN should have been earning $4.1 million per annum. It hasn't been.
P1's answer would presumably be based on projected earnings - asking ASIC to treat the valuation like a JORC resource in a mining company that so far has earned nothing from its asset.
Would that argument convince ASIC? Who knows? Possibly not, given ASIC's recent attitude to GCN's valuation of its intellectual property.
Meanwhile, it would be silly to assume that ASIC is just a rubber stamp for the prospectus - like slipping past a kitten rather than a watchdog with teeth.
GCN Price at posting:
1.8¢ Sentiment: None Disclosure: Held
