Appendix 3 and Half yearly report
Sydney, Mar 16, 2022 AEST (ABN Newswire) - GoConnect Limited's (
NSX:GO8) primary corporate objective is to establish the Company as a strategic investor in a number of businesses that will contribute to the health of the global environment and health of humanity. Accordingly the Company co-founded Go Green Holdings Ltd ("GGH") in 2015 to actively manage a portfolio of businesses including: plant based protein production and marketing through Natures Food Company Ltd and Natures Inspired Food Services Pty Ltd, development of its Augmented Reality (AR) hologram chat technology, repurposing antiviral and anti-inflammatory treatment for Coovid-19 and other pulmonary diseases through investment by GGH in Covirix Medical Pty Ltd, and product representation and brand ambassadorship sales.
During 2021, the Company worked closely with its legal advisor and the NSX to achieve the listing of the Company's shares on the NSX. After over 5 years of absence in the trading of the Company's shares on the Australian stock exchange, the Company was officially approved to list its shares on the NSX as an investment company on 31 December 2021. The NSX listing has assisted the Company to complete a critical step to be established as a strategic investment company. Growth in enterprise value of the Company in the next 12 months is expected be organic though management will continue to look for M&A opportunities to add to growth. Since commencement of trading on the NSX on 5 January 2022, the Company's shares, trading under ticker symbol GO8, have traded well in terms of liquidity and market depth with support from a number of brokers.
From GGH's celebrity product endorsement and representation, GGH has gained a crypto investment of 40,000 Zucoins valued at $4 million at the current offered price by Zucoins of $100 per Zucoins. An additional 80,000 Zucoins are owned by Covirix Medical with a value of $8 million at the current Zucoins offered price. The Zucoins value will not be brought to the accounts of the Group until realized into cash.
GGH's development of Augmented Reality (AR) Hologram Chat technology (80% owned by GGH), is a unique communication platform being developed for the Metaverse. The technology will progress to development in 2023 on smart glasses.
Business development at Covirix Medical has been intense in the past 2 years. The spread of the highly infectious Omicron variant globally since the December 2021 quarter has given the Covirix Medical team an even greater sense of urgency to deliver. Covirix Medical has discovered a class of antiviral drugs that have shown effectiveness against all variants of SARS CoV-2 due to their particular mechanism of action. The positive results are based on a series of virology tests initiated by the company. Provisional patents have been filed for 12 drug candidates. Human clinical trials have been planned to take place in the Indian subcontinent in the coming months. Covirix Medical has also entered into a sole distribution agency agreement for Australia and New Zealand for a US company DiaCarta Inc that specializes in diagnostic solutions including Covid PCR and Rapid Antigen Tests (RATs). The RAT has already received the EC marking approval from the EU regulator. TGA registration for Australian sales is currently being processed for the RAT. Covirix Medical may well be able to generate early cash flow from RAT sales. Australian demand for RATs is likely to remain strong at least for the next 12 months. To cover the population of Australia with one RAT per person per week will require supply of over 1.35 billion RATs. Reported supply secured to date by the various Australian governments is only a fraction of this expected demand. Covirix Medical can secure significant quantity of RATs for Australia in the near term from its US supplier.
Each of GGH's businesses and investments has significant growth prospects and can be expected to generate substantial enterprise value for the Company and GGH ("the Company Group").
Currently the Company is the only listed entity within the Group sitting at the top of the Company Group corporate structure. The Company Group is nevertheless planning to seek separate listing for Covirix Medical and the plant based meat business during the next 12 months.
The financial management policy of the Company is to achieve a debt free balance sheet within the next 12 months. The Company currently holds 43.72% of the issued shares of GGH which, at the recently privately traded price of $1 per share, values the Company's marketable interest in GGH at $96.174 million, equivalent to 9.09 cents per the Company's share on issue.
This value has not been included or reflected in the audited accounts of the Company, in compliance with Australian Accounting Standards. However, over $4 million GGH shares offered by the Company have been invested by professional and overseas investors since 2015. The value of GGH shares will ultimately be dependent on the underlying fundamental value of its portfolio of businesses and investments. Management of the Group has set the goal to continue to improve the enterprise value of these businesses and investments.
About GoConnect Limited
GoConnect Limited (NSX:GO8) has been established since August 1999 as a media communications company. Since 1999 and until 2015 when it co-founded Go Green Holdings, its core business specialised in the online delivery of interactive audio and video contents via its unique and proprietary technology.
Since 2015, GoConnect has transformed itself to an active investment company developing businesses that can leverage on the Company's expertise and long experience in communications technology and marketing.
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