GUVERA 'GIVING UP ON AUSTRALIA'

GUVERA 'GIVING UP ON AUSTRALIA'

AFTER being snubbed by the ASX, losing its CEO and receiving a hard time on social and mainstream media, music streaming company Guvera has decided to pull up stumps and leave Australia.

The Gold Coast company is reported to be planning a temporary relocation to India and Indonesia, which it has identified as key growth markets for its business.

News of Guvera's imminent departure was revealed by Mumbrella this morning, with the website quoting a letter to shareholders as its source.

It also reveals that CEO Darren Herft, who was the driving force behind Guvera's failed $588 million share float on the ASX last month, was replaced as Guvera's head by company founder Claes Loberg (pictured) two weeks ago.

Herft is understood to remain a director of Guvera, driving 'strategic investment opportunities' for the company.

Business News Australia has approached Guvera for comment, but it has yet to respond.

Meanwhile, the fate of its Gold Coast operations are now in doubt following the announcement. The company has already made 70 jobs redundant in the aftermath of the ASX rejection of its planned IPO.

Guvera, which has remained afloat through investor capital since it was founded in 2008, is reported to have fielded inquiries from 'international groups' interested in investing in investing in the company.

Herft had previously told Business News Australia that Guvera would continue to operate in Australia while it turned its focus on the 'high growth emerging markets' of India, Indonesia and United Arab Emirates in the short term. Philippines and Vietnam were other markets of interest.

The company, which has operations in Australia and the US, posted an $81 million loss in FY15. Its recent prospectus revealed a first-half loss of $55.7 million in FY16.

The company was at the centre of a social media storm ahead of its planned ASX float in June, led by Atlassian founder Mike Cannon-Brookes who questioned the merits of the company's business plan.

The controversy around the financial performance of the company is understood to have led the ASX to reject the company's IPO, although the ASX has not made its reasoning public.

Hear more from Guvera:

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