Regency Resources Inc. (OTCBB RSRS) Hot Penny Stock to Watch
One of the hot penny stocks to watch for the next few weeks will be Regency Resources Inc. (OTCBB RSRS). Shares are up 25% in the past week and volume has picked up considerably. Until last week this stock had seen no activity, but it seems like the hype train is just starting to gear up.
RSRS Recent News Announcements
On April 12, the Company announced the signing of a binding Letter of Intent outlining plans to seek a merger with Digitally Distributed Acquisition Corporation in order to develop a media based business offering an in-depth portfolio of content for Internet TV distribution.
DDAC has developed exclusive technology over the past four years specifically designed to enhance the delivery of content through internet TV as well as through proprietary software protocols. This innovative technology is in the final stages of beta testing, which will insure delivery of content in a more efficient and dramatically less expensive manner than existing systems.
Regency intends to rapidly develop a portfolio of content management agreements and licenses for entertainment content and distribute them to the new Over-the-Top Internet TV providers such as, Apple TV, Google TV, Roku, Western Digital and others. Regency’s business model is to share revenues with the content owners and provide unique monetization methods. According to industry research by iDate this market sector is expected to grow tenfold from its current $400 million in revenues to $4 Billion in 2016.
Regency Resources Inc. Financial Statement Highlights
In accordance with the LOI, subject to satisfactory completion of due diligence by the Company and approval by the shareholders of DDAC, the terms and conditions of the Share Exchange shall be set forth in a formal definitive agreement containing customary representations and warranties, covenants and indemnification provisions, to be negotiated between the parties. The closing of the Share Exchange is expected to occur on or before May 4, 2012 (“Closing”).
In addition, in accordance with the LOI, the Company has committed to providing or facilitating a financing of up to an aggregate of $1,000,000 through convertible debentures as follows: (a) $150,000 to DDAC upon execution of the LOI; (b) $100,000 to DDAC at Closing; and (c) no less than $100,000 to DDAC each month after Closing.
As part of the Share Exchange, the Company shall issue to the shareholders of DDAC 18,000,000 shares of Company common stock which will represent approximately 37.5% of the ownership interest in the Company. Upon Closing, DDAC shall become a wholly-owned subsidiary of the Company.
Source: RSRS 8K 4-11-2011
RSRS Stock Chart and Trading Highlights
5 Day Percent Change: 28.24
30 Day Moving Average: 0.96
30 Day Average Volume: 708,918
Bottom Line: Could this be another SNPK? Way to soon to judge that, however this stock should be added to the watch list as a possible hot penny play.