The GNS Chair this afternoon issued a statement to newsagents regarding the levy collected by the business as a premium on top of purchases.
Dear GNS Levyholder,
As you are aware for many years GNS charged its customers a levy to provide working capital for the group.
The levy impost was ended last year on the basis that the company was now mature enough to generate its own working capital and to make prices for you, our customers as low as possible.
So while the levy was no longer charged from last year, GNS has a present balance of $7.8m of those levies.
Since April this year, your levy balance has been provided on your monthly statement, so you are aware of the amount of your levy.
From time to time, customers have requested access to their levies and we have been endeavouring to find a way without endangering the company’s cash flow and working capital needs.
So in the next two months, provided ASIC clears it, an offer will go Levyholders to take up half their levy in GNS shares and the other half as trading credit.
All the details will be sent in October.
Yours faithfully,
Martin Hartcher
Chairman GNS Ltd
Please just return our levy 100%, most of us surely don’t want to be your shareholders. After reurning our levy is your own business to run the business to the ground.
I already have a significant investment in shares and do not need to purchase any more. Existing shareholders should be able to get 100% account credit. Does not have to be an immediate credit, make it spread over six months if necessary for GNS’s cash flow but do not force your existing shareholders to buy more shares just to unlock a cash refund on the Levy.