The Directors intend to generate a revenue stream from fees charged for
the establishment of each NewCo.
Such NewCos will have an inherent value and will directly benefit RRR
Shareholders who will become shareholders in each NewCo.
Wherever possible, RRR will negotiate a stake in each NewCo, for example
by being awarded warrants to subscribe in a NewCo which would be retained by
the Company as an ongoing investment, for the further benefit of RRR
In certain cases, depending on the requirements of the management of
each NewCo, the shareholder base of a NewCo may be reduced by a share
consolidation post dividend. In which case, fractional entitlements would
usually be aggregated and held within RRR for the benefit of Shareholders overall.
If a NewCo venture is successful shareholdings should appreciate in
value. If the venture is unsuccessful (and they made no further investment)
there is no real loss to Shareholders. The strategy of the Board is to seek
further ventures (NewCos) that will have the potential to be a success.
The Directors expect therefore that, in addition to their holding in
RRR, Shareholders will over a period of time, accumulate a series of
shareholdings in different companies at no cost. Furthermore, if Shareholders
chose to invest in any NewCos, it is possible that such investments may be made
at advantageous levels.
The Directors are all directors of VSA Capital, an investment banking
firm focused on natural resources, operating for companies throughout the
world. In such a capacity, the Directors will be able to source potential
reverse takeover transactions for the benefit of RRR and Shareholders. In
addition, it is likely that, in the case of reverse takeover candidates in the
natural resources space, it would be an advantage that VSA Capital were
involved to provide advisory and fundraising services where required to NewCos
to structure such transactions and assist with the sourcing of funding to
improve the chances of success of such NewCos.