Share Purchase Plan
6 March 2007
Directors' Letter
Dear Shareholder,
On behalf of the Connexionz Board, we are pleased to announce a Share Purchase Plan to further support the company's recent formation of a 50-50 joint venture company by taking a 50% stake in the United Kingdom's Infocell Investments Ltd. The other 50% is held by a syndicate of United Kingdom investors. This included a contract for Connexionz to manage and market the joint venture. The Share Purchase Plan follows the arrangements for the initial formation of the joint venture company, where the cost to Connexionz of taking up 50% of the joint venture company was GBP 75,000, and a working-capital loan of GBP 100,000 was provided. This money was raised by a private placement of Connexionz shares with a small number of existing shareholders. 3,033,651 shares were issued at 24 cents per share being 2 cents per share discount to the market on the date of issue.
The Share Purchase Plan is designed to involve shareholders in the successful formation of the new joint venture, by raising further funds to meet the additional costs in bringing together the product, marketing and sales strengths of each organisation. The Share Purchase Plan takes advantage of the Securities Act (NZX - Share and Unit Purchase Plans) Exemption Notice 2005 which allows funds to be raised from existing shareholders without incurring the costs of developing a prospectus and investment statement. Proceeds of the Share Purchase Plan may also be used to assist with Connexionz's ongoing marketing efforts in the United States of America. Under the Exemption the rights to purchase additional shares are limited to $5,000 to each shareholder and the rights issued must be non-renounceable.
Each of the Directors in Connexionz proposes to take up their full entitlement for new shares.
Brief details of the Share Purchase Plan Full details are enclosed, but in brief they are: -
Each shareholder has the right to apply for up to a maximum of 15,152 shares at $0.33 each ($5,000 maximum).
Minimum application is 6,061 shares (or $2,000), and by multiples of 500 shares after that.
The rights are non-renounceable: this means if you do not take up your rights, or only partly take them up, you cannot sell the rights to new shares to anyone else including a fellow shareholder and you will lose your entitlement under this offer.
The closing date for receipt of your application form and payment is 30 March 2007 (5 pm).
Total proceeds will be $1,870,000 if fully subscribed.
Telephone: +64-3-339-4536 / Fax: +64-3-339-4537
The amount you will pay for the shares will be 2 cents per share less than the average end of day market price for Connexionz's shares during the period beginning on 29th January 2007 and ending on 16th February 2007. Please read the attached information carefully, including the financial projections and which include the joint venture's proposed business.
Key dates and information
Offer Opens 6 March 2007 (9am)
Offer Closes 30 March 2007 (5 pm)
Date Subscription Price Was Fixed 17th February 2007
Record Date 27th February 2007
Document Date 28th February 2007
Allotment Date No later than 5th April 2007
Offer Price per Share $0.33
Number of Shares Issued Prior to the Offer 20,102,843
Number of Shares Issued if This Offer is Fully Subscribed 5,666,667
For further information Ph (03) 339 4536 or email Tony Kan.
