Doc H*lliday was wrong in his podcast.7 Dec 2019 13:27
because he seemed to be suggesting that James Parson's C4 Energy had took over the entire RGM debt that was owed to YA & Riverfort. But in the RNS those additional 2,596,363,636 Promissory conversion shares were given to YA and Riverfort. The RNS says:
"The holders of the Promissory Note (the "Promissory Note"), first announced on 6 June 2018, and most recently updated on 22 July 2019, have agreed to extinguish the entire remaining balance, owed under the Promissory Note, through a subscription for new loan notes and a share conversion.
The partial conversion of the Promissory Note (the "Promissory Conversion Shares") will result in the issuance of 2,596,363,636 new ordinary shares of the Company, and the investors have agreed to lock up the Promissory Conversion Shares, 100% of the total for three months, 70% of the total shares for a subsequent six months, and 40% of the total shares of the Promissory Conversion Shares for a further six-month period.
............
The above two paragraphs doesn't mention who was given those 2,596,363,636 promissory conversion shares but skip near the bottom of the RNS and it says:
"Riverfort Global Capital Limited and YA II PN Ltd, the participants in the Promissory Conversion, jointly held 19.93% in the past twelve months, and as such are deemed substantial shareholders during the last twelve months"
....................
So come the end of December those 2,596,363,636 promissory conversion shares will mean that YA and Riverfort will own around 14% each (or a combined 28%) of the RGM shares.
This is not surprising because it was YA and Riverfort who originally loaned RGM the $1.6 million loan in June 2018 (for the disastrous US coal project) and because RGM have missed numerous repayments YA and Riverfort have added hundreds of thousands onto that debt through restructuring fees, extension fees + interest.
So to sum up C4 energy have taken over £729,000 of the YA and Riverfort RGM debt but RGM owed YA and Riverfort much more than that. So RGM have also paid YA and Riverfort the remaining debt by giving them 2,596,363,636 promissory conversion shares. Because it doesn't mention at what price those shares were given it most likely means YA and Riverfort will be protected if the share price falls below 0.0275p, or 2.75p after 100-1 share consolidation.
Sign In
Follow the stocks
