Casino Scott12 Dec 2019 09:44
RRR Aug 20th 2012.Everything you need to know about Scott Kaintz's regard for shareholders money is in this RNS.This was easy money for YAGM they simply shorted the SP down resulting in RRR losing nearly all of the £625k pot .
In summary Investors absorbed huge dilution to raise money for Scott to bet all of it (£625k) on where the SP will be in a months time knowing that the YAGM held enough discounted stock (25%) for them to effortlessly sell the stock down and in doing so won the bet and took all of the shareholders money from the middle of the table.
Red Rock has entered into a subscription agreement with YA Global Master SPV, Ltd ("YAGM"), whereby 37,500,000 ordinary shares in the Company ("Shares") were subscribed for at a price of GBP0.02 per Share for a total cash consideration of GBP750,500 ("the Placement").
Separately, YAGM and Red Rock have entered into an equity swap agreement (the "Equity Swap") over a notional 37,500,000 shares in the Company (this does not involve the issue of new Shares). Under the terms of the Equity Swap upon each of six monthly settlement dates the prevailing market price of the Company's Shares, discounted by 10%, will be compared to a benchmark price of GBP0.02 per Share (the "Benchmark Price").
- If the discounted market price exceeds the Benchmark Price then a payment is made to Red Rock by YAGM, with the overall payment depending on the amount by which the discounted market price exceeds the Benchmark Price.
- If the discounted market price is less than the Benchmark Price then Red Rock will owe a payment to YAGM, with the size of such payment depending on the amount by which the discounted market price falls short of the Benchmark Price.
In order to satisfy any such payments under the Equity Swap, Red Rock has deposited GBP625,000 in an escrow account. A portion of the escrowed funds will be released to Red Rock on each monthly settlement date after first, deducting any payments that may be owed to YAGM.
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