Some posters here and on ss seem to know or are guessing re when the last of the vwap period(s) fall. It's not possible to determine the relevant dates unless you are able to find out the drawdown date or dates.
The loan conversion formula will not stop effecting the share price until 60 days after the date of the last drawdown.
As discussed previously, the $7million loan conversion formula allows Findlays to convert at the lower of (a)0.032 and (b) 80% of the 5 day vwap.
Resolution 2 gives Findlays a stack of shares and options (worth approx $900K at today's prices) in payment for corporate advisory services provided by Findlays in respect of the of the provision of corporate advisory and capital raising services provided to the company.
EGM Res 8 re issue of securities pursuant to a capital raising also contains an 80% vwap clause re $25 million worth of shares and free attaching options. If Findlays or any major shareholder is involved in the $25 Million capital raising how will that impact on the share price?
Subject to extension, the shares and options from Res 8 and Res 10 will be issued no later than 3 months after the GM.
Questions I'd like to ask the company include:-
1. Is the relationship between the company and Findlays an "arm's length" relationship? If not, what is the nature of the relationship?
2. Have Findlays provided $900k worth of service and if so over what period? Did some of that advice concern the $7million loan facility provided by Findlays and if so isn't there a glaring conflict of interest there?
3. Are Findlays to be involved in the $25 million capital raising (Res 8) and, if so, with Findlays having been involved in the provision of advice re capital raising services, isn't there a massive conflict of interest?
4. Re Res 9. Issue of 25,000,000 partly paid shares to Consultants, who are these consultants? Do the consultants include Findlays or any person or entity associated with Findlays. What services have/will these consultants provide?
It can't be best practice, advisable or even appropriate IF Findlays are on the one hand giving advice to the company re deals and on the other hand benefiting from the same deals by way of discounted shares and free attaching options.
I'd like to think that management of RRS is mindful re the market's perception of its relationship with Findlays. What is starting to concern me is the suspicion that part of the market's reluctance to embrace the RRS story is based on an awareness of the apparantly very close relationship between RRS and Findlays.
6. Re Res.1 Ratification of 62,500,000 options* issued to Captain Starlight Pty Ltd. Who/What is Captain Starlight and what corporate advice has that Captain provided?(*Thats approx $687k worth of options)
Ther's a lot of money going out on other things(including salaries and the $US200,000 per month) and a lot of dilution via shares in payment for corporate advice. Shareholders are being asked to approve resolutions but we have not been provided with much detail. We are also being asked to approve rewards for directors prior to there being any tangible results on the table.
I hold (having bought on market) and like RRS due to the massive anticipated reserves of oil, but atm, (and bearing in mind some graphic analogies on ss today) as an ordinary shareholder, I am not feeling the love.
I'd like to see more info, more clarity, more transparency, more results, some upwards movement, not just more shares issued.
RRS may yet produce the goods but atm are really stretching people's trust.
RRS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
