SELL
by
Room101
on
01 Sep 2013 21:48
Price at rating: 8.25, now:
This company has sold out the investors, whitewash rule and moving to the AIM. This shambles is on it's last legs, purged investors of their money and will be asking for more by December 5,000000. Just a paragraph from the agreement which has been passed, r r Pursuant to the Takeover Code, the Company is required to disclose the maximum potential controlling position which Redstone Capital may obtain as a result of the Rule 9 waiver proposals. Therefore, set out below is a theoretical example of a potential scenario. Shareholders should be aware that, under Guernsey law, there is no minimum price at which a company can issue ordinary shares. As a result, if Central Rand Gold were to issue an Ordinary Share for cash at a price of 0.0001 pence in the 18 month period following the Closing Date, and were Independent Shareholders to vote in favour of such an issue, under the terms of the Loan Note Instrument and the Warrant Agreement, all outstanding Ordinary Shares to be issued to Redstone Capital pursuant to the conversion of the Loan Notes and exercise of the Warrants would be issued at such a price. In this scenario, if Redstone Capital were to convert all of its Loan Notes and exercise all of its Warrants at a price of 0.0001 pence per Ordinary Share as a result of the re-pricing mechanism, then Redstone Capital would be interested in 99.99 per cent. of the issued share capital of the Company. r Remember there is no II's associated with this company, your shares would become absolutely worthless and you have no redress, this is not even worth a gamble
Score: 97.50