Replies to post #62603 on Red Giant Entertainment, Inc. (fka REDG)

[rickn23]

You are right the SEC doesn't require that REDG do filings. Either Benny decided to do SEC filings, or more likely, it's a requirement by companies that buy convertible debt

The penalties that Duke mentions is attached to the convertible debt, not the SEC.

The SEC filing do several things:

they give an air of legitimacy to the company-something important to shareholders.

it allows tracking of authorized shares and shares outstanding-important for the convertible debt holders

it is supposed to track material changes to the company-important to everyone.


You might want to read the penalties associated with the "Hoppel Note". It's a $100,000 note. Going into default, immediately increases it to a $150,000 note plus adds $1,000 per day in penalties, then there is interest on top.