Global Connectivity - Statement re Trading Update

Global Connectivity

22/02/2023 07:00

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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 £75
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 £75
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 (https://www.globalconnectivityplc.com/)

 

Claire Louise Noyce

AQSE Stock Exchange corporate broker

Hybridan LLP

Tel: +44 20 3764 2341

Email: claire.noyce@hybridan.com (mailto:claire.noyce@hybridan.com)

www.hybridan.com (http://www.hybridan.com)

 

Nick Michaels

AQSE Stock Exchange corporate adviser

Alfred Henry Corporate Finance Limited

Tel: +44 (0) 20 3772 0021

www.alfredhenry.com (http://www.alfredhenry.com)

 

 

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