Hi stockzilla,Yep, they've been doing it for a long time now....

Hi stockzilla,

Yep, they've been doing it for a long time now. About time the SEC (US equivalent to ASIC) is having a look.

From the Forbes article:

"In a typical Yorkville investment, Angelo would make a loan to a smallish company in return for a note that carried a fixed interest rate that could also be converted into discounted stock. According to the SEC, however, once the credit crisis hit Yorkville could no longer generate cash by selling stock of its portfolio companies because of the massive drop in market liquidity of their shares and as a result, Yorkville’s returns in 2008 and 2009 largely consisted of unrealized gains from marked-up investments and unpaid interest."

Sounds familiar doesn't it.......

Clearly ROG did little due diligence on their "equity facility". A dumb move from an MD desperate for cash. Who suffered, yep, we did.

Gaspew ;)