Business
Renewal of Convertible 10% Loan Notes
Renewal of Convertible 10% Loan Notes.
About this update from Red Rock Resources Plc
[{"type":"text","content":"\n \nRNS Number : 1138G Red Rock Resources plc 02 November 2018 \n\nRed Rock Resources PLC\n(\"Red Rock\" or the \"Company\")\nRenewal of Convertible 10% Loan Notes \n \n2 November 2018 \nRed Rock Resources Plc, the natural resource development company with interests in gold, minerals and steel feed materials, announces an update on the Convertible Loan Notes (\"Notes\") with accompanying Warrants (\"Warrants\") issued to high net worth investors in November and December 2017, and announced on 10 November 2017, 12 December 2017, and 14 December 2017.\nThe Notes were due for redemption or conversion into new Red Rock shares (\"Shares\") at a price of 0.8p per Share, with a final redemption date of 19 December 2018. The Warrants were issued on the basis of 1 Warrant for every 2 Shares to be issued on conversion, with an exercise price of 1.4 pence per Share and a life to 30 April 2019.\nHolders of £575,000 principal value of Notes, out of £950,000 of Notes still outstanding, have to date applied to renew the Notes for twelve months to a new final redemption date of 19 December 2019 on the same terms. The Warrants of renewing Noteholders have similarly been extended on the same terms by one year to expire on 30 April 2020. \nAndrew Bell, Chairman, comments: \"We welcome the confidence shown by those of our Note holders who have so far come forward and believe that extending this instrument will prove good for them and for the Company. The wider market can see that Red Rock remains an attractive destination for funds in poor market conditions and that the Company will continue to remain liquid at a time when attractive opportunities may present themselves.\" \nThe Notes were issued at par and are convertible into Shares at a price of 0.8 pence per Share. Each Note has a denomination of £1,000 and is thus convertible into 125,000 new Shares in the Company. Conversion may take place at any time up to the final redemption date.\nEach Note holder also received 62,500 Warrants for each Note subscribed. Each Warrant entitles the holder to subscribe for Shares at any time up to the date of expiry at a price of 1.4 pence per Share. \nThe interest rate on the Notes is 10% per annum, accruing monthly.\nThis announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.\nFor...