Shares in the penny stock of Regency Resources (OTC: RSRS) will now be trading under the name Digital Development Group Corp. (OTC: DIDG). We made a point to send out alerts to our subscribers when shares of RSRS were trading at 85 cents knowing that the name change and ticker symbol change would be when the penny stock was going to take off. Digidev, as we noted on April 23rd, is a development stage company. The penny stock of Digidev Group (DIDG), RSRS, closed at 83 cents in the last trading session making this price a tremendous opportunity for those that wish to buy the cheap shares.
Through a merger with Digitally Distributed Acquisition Corp., Regency Resources will be moving forward as Digidev Group, seeking to build a media business using proprietary technologies and close industry relationships. The main goal of DIDG is to develop a broad-based and varied portfolio of content for Internet TV distribution. The name change to Digidev better reflects RSRS (DIDG) management’s decision to undertake a business focus and interest in the internet media distribution sector.
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RSRS (DIDG) Stock Chart / Analysis:
Market Capitalization 66.15M
Shares Outstanding 73.50M
52 Week High
(4/9/2012) 1.35
Last Trading Session:
Last Volume 17,500
Trades 185
Average Trade Size 3,036
| Price and Volume Performance | |||||||
| 5 Day Pct Chg | -5.68% | 5 Day Moving Avg | 0.92 | 5 Day Avg Vol | 421,443 | ||
| 10 Day Pct Chg | -23.85% | 10 Day Moving Avg | 0.968 | 10 Day Avg Vol | 1,044,813 | ||
Digidev’s business model is to share revenues with content owners and provide unique monetization methods. According to industry research by iDate, this market sector is expected to grow 10X from its current $400 million in revenues to $4 Billion in 2016.
Digidev (Digidevgroup, DIDG) History:
Regency Resources entered into a binding letter of intent with Digitally Distributed Acquisition Corp., a Delaware corporation (“DDAC”), effective April 10, 2012, in connection with a proposed reverse acquisition transaction by and between Regency Resources and DDAC whereby Regency Resources will acquire all of the shares of outstanding capital stock of DDAC in exchange for the issuance of a certain ownership interest in Regency Resources to the shareholders of DDAC. DDAC is expected to have certain valuable products and intellectual property rights comprised of a web-based multi-tiered billing infrastructure and related to proprietary software and other means of syndicating and encoding media content that it will acquire from Digitally Distributed, LLC, a Delaware limited liability company prior to or concurrently with the Closing.
In accordance with the LOI, subject to satisfactory completion of due diligence by Regency Resources 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.
Furthermore, in accordance with the LOI, Regency Resources 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, Regency Resources shall issue to the shareholders of DDAC 18 Million shares of RSRS common stock which will represent approximately 37.5% of the ownership interest in Regency Resources. Upon Closing, DDAC shall become a wholly-owned subsidiary of Regency Resources.
Digidev Group (DIDG) has launched a new corporate website in place of the Regency Resources website: www.digidevgroup.com
A close look into DIDG:
When viewing the SEC filings for Regency Resources (see here), first thing you notice when viewing the most recent 10-Q filed is that until filter past all of the details about the mining exploration attempts that didn’t come to terms for the company in recent years will you find the details regarding Digitally Distributed Acquisition Corp. More interesting is that when you view the Insiders Transaction for the issuer, you will come across Martin W. Greenwald who is noted as Director and Officer (Chairman of the Board) for Regency Resources (see here).
Greenwald is also listed as Director and Officer (CEO and Secretary) of Public Media Works, Inc. (OTC: PUBMQ). PUBMQ is currently at 0.003 having dropped from its high of $4.75 in October, 2010. When Greenwald step on board with PUBMQ on March 7, 2011, shares in the penny stock were trading at 0.54.(see chart here)
Also, Greenwald is listed as one of the Directors for Image Entertainment Inc. (Pinksheets: DISK) since April 29, 2009. DISK had peaked just after his joining at around $1.30 in early June of 2009 before the penny stock tumbled to today’s price of 6 cents. (see chart here)
Bottom Line: Does the history and lack of financial data about Digidev Group (DIDG) and the track record of Regency Resources (RSRS) make investing in the penny stock risky? You bet it is. Will it follow the long-term path of DISK and PUMBQ? If your head hurts when you hit it with a hammer once, and you test it to see if it does the second time, chance are it will when you try it on the third time.
Does this mean you should avoid the penny stock, DIDG (RSRS)? By all means no, Just like SEFE, SNPK and STVF, all of which have $0 Revenues but offered more than 100% gains at the early stages, huge marketing campaigns are underway and likely to drive up the stock price creating profits for those who are early and avoid being too greedy.
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