Global Construction in tax windfall

Global Construction Services has raised an additional $630,400 through its share placement and expects to receive a tax refund of $3.15 million after taking advantage of tax consolidation legislation.

The announcement is below:

Global Construction Services (ASX: GCS, "GCS Group") wishes to announce two developments with a positive impact on the company's financial position.

Capital Raising

GCS has raised an additional $630,400 through the issue of 1,576,000 shares at 40 cents per share to sophisticated investors.

The Placement follows the $2.76 million raised through the placement of 6.9 million shares at 40 cents per share, announced on 6 February 2009.

The Company has commitments from GCS directors for a further 4.75 million shares, at 40 cents per share, to raise an additional $1.90 million. This issue is subject to the approval of GCS shareholders at a General Meeting to be held on 26 March 2009.

A Share Purchase Plan (SPP) providing eligible shareholders with the opportunity to subscribe for shares at the same price as the Placements is due to close on 26 March.

Tax Return Claim

GCS also advises that it has lodged its 2007/2008 tax return with the Australian Taxation Office which is expected to result in a cash refund of $3.15 million. The cash refund will generate an increase in NPAT of $3.15 million for the 2009 financial year arising from the reduction of tax expense.

The Company has taken advantage of tax consolidation legislation to make the claim. The expected refund arises from the immediate availability of losses in the tax consolidated group and the impact of accelerated tax depreciation under the low value pool.