This is a very brief note. The rest of the story can be found here:

http://business.financialpost.com/2012/02/10/inside-the-epic-collapse-of-zungui/

Basically, Zungui, a Chinese company (ZUN on Venture), has been suspended pending a search for a missing $58 million in cash. By all indications, the money is gone, gone, gone.

What we find interesting is that most of the media reports on this company do talk about the company's initial public offering, where it raised close to $40 million. However, many media sources leave out the names of the underwriters of that offering, so we are posting them here. No one is accusing the underwriters of anything, it's just that we at least think they should be named. The IPO bankers were Canaccord Financial, GMP Securities, and Research Capital Corp.

And yes, they still earned their fees on this deal, even though a company worth $200 million with $142 million in 12-month revenues and reported positive net earnings is nowhere near what it purported to be, less than three years later. Just thought you should know.