$RIHT has to return millions of dollars to an investor that walked away from an agreed purchase of 7,000,000 shares, read this:
On the Closing Date, the Company terminated the securities purchase agreement (the “ Purchase Agreement ”) it had entered into with Seaside 88, LP (“ Seaside ”) on March 7, 2014. The Company reported the entry into the Purchase Agreement with Seaside on a Current Report on Form 8-K filed with the SEC on March 10, 2014. "
The company does not have to return 7,000,000 shares as 7,000,000 million shares were never issued Seaside purchased shares under the agreement. Rightscorp issued 835,530 at a to Seaside for purchase price of $0.374 per share for total proceeds of $312,488, Then the next month issued 1,145,740 shares of common stock to Seaside for total proceeds of $333,135. Seaside then bought 2 blocks as listed above were at prices well above the current market.
Here is the clip from the 10Q. The facts
During the nine months ended September 30, 2014, we entered into a securities purchase agreement (the “March 2014 Purchase Agreement”) with Seaside 88, LP (“Seaside”), pursuant to which we agreed to sell, and Seaside agreed to purchase, up to 7,000,000 shares of common stock, in closings to be held monthly over a one-year period, subject to certain conditions. The initial closing under the March 2014 Purchase Agreement, pursuant to which we sold to Seaside 835,530 shares of common stock at a purchase price of $0.374 per share for total proceeds of $312,488, occurred on March 7, 2014.
The parties agreed that subsequent closings under the March 2014 Purchase Agreement will occur on a monthly basis over a one-year period, subject to certain conditions. We agreed to sell to Seaside, at each subsequent closing, 10% of the total number of shares of our common stock traded during the 20 trading days immediately preceding such closing, at a purchase price per share equal to the lower of the average of the high and low trading prices of the common stock for the 5 consecutive trading days immediately prior to a closing date, multiplied by 0.50 and the average of the high and low trading prices of the common stock for the trading day immediately prior to a closing date, multiplied by 0.55, provided that, no monthly closing will occur if the purchase price for such closing would be lower than $0.25 per share (the “Floor”). The failure to have a subsequent closing due to failure to meet the Floor will not impact any other subsequent closing. Seaside agreed not to engage in any short sales of our common stock while it holds any shares purchased under the March 2014 Purchase Agreement. The Company has the right to terminate the March 2014 Purchase Agreement at any time by providing written notice to Seaside. Pursuant to two subsequent closings since the initial closing, we issued 1,145,740 shares of common stock to Seaside for total proceeds of $333,135.
Rightscorp recently raised $2.7 million at .25 cents in September. So Rightscorp is well funded here
