Another interesting GBS filing

by Volker Weber

Another $1,000,000 loan at 20% interest, first priority security, plus options to purchase 500,000 shares of common stock at an exercise price of $0.20. And finally, the company borrows $145,000 at 20% interest from the German subsidiary to pay the October payroll.

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"Principal and Interest Installment Payments . The outstanding principal under this Note shall be repaid in full and in one lump sum, without limitation, on the earlier of (i) the one-year anniversary of the date of this Note or (ii) such time as the sale of the Company’s interests in IDC Global, Inc. is consummated (the “ Maturity Date ”). Accrued interest shall be paid in cash on a quarterly basis or on the Maturity Date, at the option of the Company."

Looks like IDC Global will be sold off soon, or there will be major bills due a year from now.

Thomas Duff, 2012-11-02 23:37

20% interest? Yikes!

Bob Balaban, 2012-11-03 02:51

That's the second time, they have to do this. This is either desperate, or something I don't understand. I wonder what the plan was in the first place.

Christian Tillmanns, 2012-11-03 07:51

It is clear that GBS is close to bankruptcy and it is only a matter of time.
I have no opinion about GBS, but Notes/Domino do need some big consulting/software companies to drive the business forward.

Jesper Kiaer, 2012-11-03 14:37

Jesper "big" isn't always the best way to be. I know plenty of small ones who are serving both new and existing customer quite successfully.

Bruce Elgort, 2012-11-03 16:42

@Bruce, I agree, but those good stories may not make outside those companies. It is easier for large corporation get the good stories spread in the press, getting Notes/Domino into large corporations etc.

Jesper Kiaer, 2012-11-03 18:28

Maybe the IBM ICS market is already too small for "big"!?

Henning Heinz, 2012-11-03 23:05

Cassandra is your middle name, right?

Volker Weber, 2012-11-03 23:08

Considering the bulk of the Transformer team left as well to start Red Pill Development, this probably doesn't mean good things for GBS.

Erik Brooks, 2012-11-04 22:47

-Considering the bulk of the Transformer team left as well to start Red Pill Development, this probably doesn't mean good things for GBS.

Time will tell , prehaps it will help them not throwing more Cash at that , but then Again only gbs know if it was turning a proffit or not

Flemming Riis, 2012-11-04 22:52

Erik I believe that only Tim, Nathan, Keith, Peter and Jennifer were the only people from the Transformer team to go to Red Pill (according to a few blogs). From what I know there were many other developers who worked on that team who no longer work for GBS.

Bruce Elgort, 2012-11-05 00:11

My heart just bleeds for the previous business owners who sold their company for shares. Talk about a stinging feeling.

Andrew Magerman, 2012-11-05 14:57

This also means that no banks are now giving loans to GBS.

Andrew Magerman, 2012-11-05 14:58

I'd still like to see IBM acquire the Transformer product and source.

I haven't seen a demo in a while, but the concept was solid. IMHO, not solid enough to justify anywhere near what GBS was charging for the product, but solid enough that if it was a free/cheap download from IBM, it would help migrate client apps to the web to help retain licenses.

Mike McPoyle, 2012-11-05 15:26

Cassandra ...yes,

I have seen this dozens of times before. Companies start on NASDAQ, get into trouble, getting bumped to OTCBB (over the counter) and end up in the Pink Sheets...have a ludicrous stock price of something like 0.00008 because they can get no funding they issue millions of new shares again again and the stock gets completed diluted ......and then the company dies.....

GBS is no different .....or rather GBSX because they are already at the OTCBB stage ....

Jesper Kiaer, 2012-11-05 15:41

Very sad indeed.

This is interesting:

"borrows $145,000 at 20% interest from the German subsidiary to pay the October payroll."

Do you fully understand the structure? - I don't! I wonder how investors do. If you go to gbs.com - investor relations you get the info from the German GBS (Group Business Software AG). - 50.1% of which is owned by GBSX (GBS Enterprises Inc) - Who owns the rest? Does GBSX own anything apart from 50.1% of Group Business Software AG?

Andre Hausberger, 2012-11-05 15:48

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vowe.net is a personal website published by Volker Weber a.k.a. vowe. I am an author, consultant and systems architect based in Darmstadt, Germany.

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