GoConnect secures $3m in US funding

Digital media and IPTV company GoConnect (ASX:GCN) has entered into a funding arrangement and co-operation agreement with La Jolla Cove Investors in the US

Digital media and IPTV company GoConnect (ASX:GCN) has scored $US3 million ($3.02 million) in funding from a US investor.

The San Fransisco-based La Jolla Cove Investors has agreed to grant GoConnect three convertible note facilities of $US1 million each, maturing two years after the first draw down.

The notes bear an interest of 4.75 per cent per annum, payable monthly in either cash or new shares. Minimum draw down will be $US200,000 per month. The conversion price of the notes is capped at $A0.15 and has a floor price of $A0.04.

La Jolla Cove will also work with GoConnect on M&A opportunities in the US market, and help provide an inroads to Silicon Valley investors, GoConnect said.

GoConnect executive chairman, Richard Li, said the company “looks forward to working closely with [La Jolla Cove] on securing opportunities that will help our expansion in the US market.

GoConnect has been developing the uctv.fm IPTV network, which provides music-based programming content on-demand using a proprietary streaming method to help minimise lag. The company also provides retail internet access.

GCN shares ended Tuesday's trading 2.56 per cent lower at $0.038. The shares hit a six-month peak of over $0.068 in July, from a six-month low of around $0.024 earlier that month.

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