Global Connectivity PLC Statement re Trading Update (6223Q)
February 22 2023 - 2:00AM
UK Regulatory
TIDMGCON
RNS Number : 6223Q
Global Connectivity PLC
22 February 2023
22 February 2023
Global Connectivity plc
("GCON" or the "Company")
Trading Update
Global Connectivity plc (AQSE: GCON) formerly known as Rural
Broadband Solutions Plc, a company focused on communication
services and technologies that enhance connectivity, announces a
Trading Update.
In October 2022, GCON announced an investment from Tiger
Infrastructure Partners Fund III LP ("Tiger") into its two
operating subsidiaries and a change of name to Global Connectivity
plc. Tiger is investing up to GBP75 million into Rural Broadband
Solutions Holdings Limited ("RBSHL"), a newly formed company, and
owns 85% of the common equity of RBSHL. The relationship with Tiger
has not only given the two operating subsidiaries of RBSHL
significant access to capital but has also provided a high level of
additional expertise as the Tiger team has taken an active role in
supporting these businesses. GCON has an ownership interest of 15%
in RBSHL following repayment of debt and accrued interest (not
subject to further dilution up to a GBP75 million investment by
Tiger), which due to the capital and expertise provided, will allow
both the rapid expansion of existing rural broadband networks and
the building of new ones.
This will in turn create significant value for GCON's
shareholders through the enhanced value of its shares in RBSHL that
will be achieved as a result of this accelerated growth. Since the
investment, significant progress has been made with respect both to
the building of the Company's first fibre network in Shropshire and
also in identifying further target areas for expansion within the
UK.
The Board of GCON is now looking for opportunities in
technically based businesses (albeit ones that do not compete with
its existing broadband activities), that enhance connectivity
either between consumers or businesses that provide services to
consumers where enhanced connectivity is essential. The senior
management team of RBSHL will continue dedicating their time to the
delivery of RBSHL's business plan, and will not be involved in
diligencing or managing new investments for GCON.
Keith Harris, Executive Chairman of Global Connectivity plc,
commented: "Tiger shares our vision that we have long held for the
business and they add the financial strength to allow us to fulfil
that vision. We are delighted with how the relationship has evolved
over the past five months to assist communities in Shropshire,
Staffordshire and Wales as well as other rural areas throughout the
United Kingdom to solve their immediate and growing requirement for
reliable, gigabit-capable connectivity. We are now actively engaged
in investigating appropriate investment opportunities for GCON to
continue its expansion."
--ENDS--
For more information, contact:
Keith Harris
Executive Chairman
Global Connectivity plc
Email: info@globalconnectivityplc.com
https://www.globalconnectivityplc.com
Claire Louise Noyce
AQSE Stock Exchange corporate broker
Hybridan LLP
Tel: +44 20 3764 2341
Email: claire.noyce@hybridan.com
www.hybridan.com
Nick Michaels
AQSE Stock Exchange corporate adviser
Alfred Henry Corporate Finance Limited
Tel: +44 (0) 20 3772 0021
www.alfredhenry.com
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END
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