Ann: Launch of GoConnect Jam Factory Free WiFi Ma, page-38

re: Ann: Launch of GoConnect Jam Factory Free... Rotto, this is what I believe may eventuate.

GCN will issue their quarterly tomorrow and within a week or so, an ASX query may be lodged questioning them on their solvency noting their recipts from customers, negative operating cash flow & meagre cash at the end of the quarter. They may then ask them how they will have enough cash to fund the next quarterlies activities.

GCN may then state to the ASX that given they have a debt facility and are sure that revenue will increase in the near future, they'll be able to finance normal operations. They may state they will have enough monies to get through the next 3 months - of which one month has already passed.

If they indeed do release their quarterly tomorrow, of which I believe a strong chance exists they will, how will the ASX react? I guess we'll find out how the ASX views a debt facility and an anticipated increase in revenuem as compared to current revenue, under their listing requirements.

If the ASX disagrees, they may suspend the entity as GCN no longer meets the requirement for quotation.

The outcome is vital for shareholders given the ASIC determination, as it my be possible for GCN to continue without a placement via a prospectus using the debt facility. Looking at GCN's ASX announcements for some time now, both ASIC and the ASX are keeping a close eye.

Line ball. A good chance is that an ASX query will be replied to and released to the ASX within 10 days IMO and I'll be very interested in the result as I enjoy deciphering legislation & corporate law.