Red Rock issues £623,000 of convertible notes to high net worth investors

Red Rock Resources plc has issued £623,000 of convertible notes with accompanying warrants to high net worth investors.

TERMS

The company said that £367,000 of subscriptions for the notes were new subscriptions, and £256,000 were conversions of debt facilities. 

The notes were issued at par and are convertible into ordinary shares of £0.0001 in Red Rock at a price of 0.6 pence per share.

Each note has a denomination of £1,000 and is thus convertible into 166,666 new shares in the company.

Each note holder also receives 83,333 warrants for each note subscribed.

Red Rock added that the maximum number of new shares that could be issued upon exercise of all of the notes is 103,833,333 and the maximum number of new shares that could be issued upon exercise of all of the warrants (for an additional consideration to the company of £441,480) is 55,185,000.

CONFIDENCE

“Subscribers to this issue of notes, which was carried out during weak markets at a premium to the market price, included both holders of debt and long term equity investors, and the arrangement fee of 6% was paid in notes,” said chairman Andrew Bell.

“This pricing reflects the confidence of our investors in Red Rock’s prospects.”