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GoConnect secures $3m in US funding

GoConnect secures $3m in US funding

Digital media and IPTV company GoConnect (ASX:GCN) has scored US$3 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 US$1 million each, maturing two years after the first draw down.

The notes bear an interest of 4.75% per annum, payable monthly in either cash or new shares. Minimum draw down will be US$200,000 per month. The conversion price of the notes is capped at A$0.15 and has a floor price of A$0.04.

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% 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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Tags ASX:GCNRichard LiLa Jolla Cove InvestmentsGoConnectConvertible notes

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