Convertible Bond Conversion & Options Cancellation

RNS Number : 5742M

Red Rock Resources plc

27 August 2013

 



Red Rock Resources Plc

("Red Rock" or the "Company")

Convertible Bond Conversion and Cancellation of Options

27 August 2013

Red Rock announces that YA Global Master SPV, Ltd. ('YA Global'), which is advised by Yorkville Advisors LLC ('Yorkville'), has converted £275,000 in unsecured Convertible Bonds 2014 into 44,212,219 ordinary shares of 0.1 pence each ("Shares") in the Company under the terms of the Convertible Bond Instrument ("Convertible") as announced on 8 August 2013, at a price of £0.006220 per Share. 

Following the Subscription, the Company's total issued ordinary share capital will be 1,378,116,097 ordinary shares of 0.1p. Application has been made to the London Stock Exchange for the Shares, which rank pari passu with the Company's existing issued ordinary shares, to be admitted to trading on AIM. Dealings are expected to commence at 8.00 a.m. on 2 September 2013.

Simultaneously, the Company announces that it will not issue 17,000,000 in options, as announced on 29 January 2013, that were to be have granted at the Board's discretion to key staff and personnel.  Additionally, 10,000,000 options that were granted to Company Chairman Andrew Bell on the same day at prices between £0.02 and £0.05 have also been waived by the grantee.

Company Chairman Andrew Bell comments:

"The Company has decided to put in place a tax efficient approved share option plan, and therefore not to grant the previously announced options to staff pending approval of this new structure.  In addition, I believe that the use of the authorised issuance authority granted to the Board to issue convertible instruments for employee options  could limit the Company's flexibility with regard to its authorities.  These actions create room to manoeuvre as we appear to be entering more buoyant market conditions in our sector."       

For further information contact:

Andrew Bell 0207 747 9990 or 07766 474849	Chairman Red Rock Resources plc
Sandra Spencer 0207 747 9990 or 07757 660 798	Investor Relations Red Rock Resources plc
Colin Aaronson / David Hignell 020 7383 5100	NOMAD Grant Thornton UK LLP
Nick Emerson 01483 413500	Broker SI Capital Ltd

 

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