Red Rock Resources plc announced a private placement of notes for gross proceeds of £367,000 on July 25, 2022. The notes are being issued at par and are convertible into ordinary shares of £0.0001 in at a price of 0.6 pence per share. Each note has a denomination of £1,000 and is thus convertible into 166,666 new shares in the company.

Conversion may take place at any time within 12 months of issue date. Each note holder also receives 83,333 warrants for each note subscribed. Each warrant entitles the holder to subscribe for shares at any time up to thirty months from the date of issue at a price of 0.8 pence per share.

The interest rate on the notes is 12% per annum, payable on maturity. The maximum number of new shares that could fall to be issued upon exercise of all of the notes is 103,833,333 and the maximum number of new shares that could fall to be issued upon exercise of all of the warrants (for an additional consideration to the company of £441,480) is 55,185,000.