Completion of Substantial Acquisition in Global Approach Limited (ASX:GLO)
Jan 19, 2004
ASX RELEASE"The strategic stake in GLO is important to JUM for the synergistic benefits between the online gaming operations of GLO and our core online retailing operations", said Mr Mike Veverka, CEO of Jumbo Corporation Limited. "Improvements to our online marketing techniques, customer support and secure online payments systems have already been implemented as a result of the close relationship between the two companies". In addition to the operation benefits, the value of JUM's stake in GLO has increased 70% to $1,174,000 from its $690,000 investment. This is based on the last closing price of 212 c for GLO shares (Friday 16 January). An additional $108,000 bonus is possible if GLO reaches an EBDITA of $1 million for the 12 months ending December 2004. The following table indicated the value of JUM's stake at various GLO share price levels. TABLE On January 6 2004, JUM's founding shares in Global Approach Operations Pty Ltd were converted to 3,618,817 GLO shares. The initial $150,000 investment in Global Approach Operations Pty Ltd is now valued at over $434,000 based on Friday's 12c closing share price. 2,714,111 of these shares are subject to a voluntary escrow period of 12 months expiring 5 January 2005. The remaining 904,706 share are subject to forfeiture if GLO fails to reach an EBITDA of at least $250,000 for the 12 months ending December 2004. However if GLO exceeds an EBITDA of $1 million for the same period, JUM is entitled to a bonus of 904,706 shares. The GLO board now comprises of the following members.
- Mr David Barwick - Chairman
- Mr Mike Veverka - Non executive Director
- Mr Ian Mackay - Non executive Director
- Mr Bill Lyne - Non executive Director and Company Secretary.