I don't think the future for new capital is as bright as I would infer from your post.
The problem for GCN is that it seems no longer able to raise capital through new issues.
The last mention of doing this was in an announcement to ASX dated 4 August 2014.
In this announcement GCN breezily tells its shareholders that it has made a placement of $1.5 million in new equity capital. GCN assures shareholders that $1 million of this has already been unconditionally committed by a professional investor.
The issue was underwritten by Sino Investment Services Pry Ltd.
So that's alright then, and this money should have been well and truly in the GCN bank account many weeks ago.
The problem is that it appears neither the investors nor SIS came to the party.
As you know, GCN Pty Ltd is being liquidated. Why is this so, if the sophisticated investors coughed up money for their shares, or alternatively SIS the underwriter subsequently coughed up?
So I don't agree that GCN can any longer raise capital through new issues time after time.
GCN Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
