eureka report 8th feb 2012- looking good

GoConnect windfall due in March-April

Readers who followed the Speculator into the listed internet content supplier GoConnect (GCN) last year, and retained at least 55,000 shares, will be in for a handy windfall in the next month or so.

In this column on August 31 last year we reported that GoConnect had entered into a memorandum of understanding (MOU) with the public unlisted company Priority One Network Group Ltd to form a joint venture to deliver promotion of merchant partners’ goods and services to an audience of 400 million consumers.

As we tracked this ambitious deal through subsequent weeks, when GoConnect shares recovered from a year’s low of 0.6¢ to a high of 7.1¢, it emerged that GoConnect shareholders with a minimum of 55,000 shares at October 21 would be eligible for a free distribution of 135 million Priority One shares to enable that company to join the ASX with a sufficient spread of shareholders.

That has since been achieved, with shareholders notified last month of their entitlement based on 1513 Priority One shares valued at approximately 30¢ each to be allocated free for every 10,000 GoConnect shares held on the “ex” date minimum of a 55,000 shareholding on October 21.

GoConnect reported that Priority One was preparing another information memorandum this week before applying for listing on the ASX, which directors hope to achieve in March or early April.

With 200,000 GoConnect held on the “ex” date, the Speculator can look forward to a free issue of 30,260 Priority One shares and, hopefully may so many of his Eureka Report readers.