Rotten Fish? GetFugu Not Getting $5mil Funding After All

Last week I wrote a post about a recent flurry of deal and funding activity at enhanced mobile search marketing company GetFugu (GFGU). Well today something clearly went pear-shaped with those investments from SpongeTech ($4mil) and Vanity Events Holding ($1mil). This morning GetFugu issued a press release announcing that it had rescinded the investments... which is odd, since they were the recipient. Basically they were saying they no longer wanted or needed the money (maybe 'rejected' would've been the right word). Then later in the day SpongeTech (who was also planning to be a customer) issued its own release declaring that their "investment arrangement with GetFugu, Inc. has been rescinded"... making it sound like it was their decision not to pursue the investment. To make matters messier, SpongeTech had advanced GetFugu $1.75mil in anticipation that the companies would reach a definitive agreement, and apparently GetFugu has already spent the money (oops!). So, now they need to find alternative financing to pay back those funds. Well inquiring minds definitely want to know much more about what really went down here, right? You gotta figure, either something went very badly between GetFugu and these investors, or that GetFugu found a bigger and/or better investor... or potentially, a buyer. One thing is quite clear, the market thinks this stinks. GetFugu's stock plummeted 37% on heavy volume.