Contract analysis

I. Introduction and Purpose Grizzly Peak Research LLC ("Grizzly Peak" or "GPR") is issuing this Corrective Publication in connection with the settlement of litigation brought by Redstone Gaming Corp. ("RGC") in the Superior Court of California, County of Los Angeles, Case No. 24STCV-01892. This Corrective Publication is required by the terms of the Settlement Agreement and Mutual Release dated January 6, 2025, entere

II. Background on Redstone Gaming Corp. RGC is a publicly traded gaming and media-entertainment company incorporated in the State of Nevada and headquartered at 8800 Crimson Ridge Parkway, Suite 1200, Las Vegas, Nevada 89113. RGC is a reporting company under the Securities Exchange Act of 1934, as amended, and files periodic and current reports with the United States Securities and Exchange Commission (the "SEC"). RG

III. GPR's Short Position Disclosure GPR disclosed in each of the three Reports that GPR and its principals maintained short positions in RDGM securities at the time of publication. Specifically, at the time of publication, GPR's affiliated investment fund, Grizzly Peak Capital Partners LP ("GPCP"), held a short position of approximately 680,000 shares of RDGM common stock. Based on the pre-publication closing price

IV. Correction Regarding Report 1: Revenue Fabrication Allegation

IV.A. Summary of Original Allegation In Report 1, entitled "House of Cards: Redstone Gaming's Manufactured Earnings," published on February 7, 2024, GPR alleged that RGC had fabricated approximately $410 million in fiscal year 2023 revenue through purportedly fictitious intercompany transactions among RGC's operating subsidiaries. The report asserted that these transactions lacked economic substance and were designed

IV.B. Corrective Statement GPR acknowledges that the revenue-fabrication allegation set forth in Report 1 was unfounded. Following the publication of Report 1, RGC's independent auditor, Pinnacle Audit & Advisory LLP, conducted a supplemental review of RGC's intercompany transactions and consolidation procedures for fiscal year 2023 at the request of RGC's Audit Committee. That supplemental review confirmed the accur

V. Correction Regarding Report 2: RNG Manipulation Allegation

V.A. Summary of Original Allegation In Report 2, entitled "Rigged Reels: How Redstone's Slot Software Cheats the Regulators," published on February 14, 2024, GPR alleged that RGC had manipulated the random-number-generator ("RNG") software embedded in its proprietary electronic gaming platforms to inflate the payout statistics reported to the Nevada Gaming Control Board (the "NGCB"). Report 2 asserted that this purpo

V.B. Corrective Statement GPR acknowledges that the RNG-manipulation allegation set forth in Report 2 was disproven by the Nevada Gaming Control Board. On March 29, 2024, the NGCB completed an independent audit of RGC's RNG systems, including a comprehensive technical examination of the source code, algorithmic logic, and statistical output of the RNG software deployed across RGC's electronic gaming platforms. Follow

VI. Correction Regarding Report 3: Related-Party / Vermilion Holdings Allegation

VI.A. Summary of Original Allegation In Report 3, entitled "Double Down on Fraud: Redstone's Related-Party Shell Game," published on February 21, 2024, GPR alleged that RGC's Chief Executive Officer, Marcus J. Calloway, had engaged in undisclosed related-party transactions with a purported shell entity identified by GPR as "Vermilion Holdings LLC" ("Vermilion"). Report 3 asserted that these transactions involved the

VI.B. Corrective Statement GPR acknowledges that the related-party allegation concerning Vermilion Holdings LLC set forth in Report 3 was based on incomplete information and was misleading. GPR's investigation into the purported relationship between Mr. Calloway and Vermilion Holdings LLC was not completed prior to the publication of Report 3. An internal review conducted by GPR after the publication of Report 3 reve

VII. Market Impact and Acknowledgment of Harm GPR acknowledges that the publication of the three Reports had a significant adverse impact on the market price of RDGM common stock and on RGC's aggregate market capitalization. Following the publication of Report 1 on February 7, 2024, RDGM's closing stock price declined from $92.14 per share (the closing price on February 6, 2024) to $84.37 per share, representing a si

VIII. Regulatory and Investigative Outcomes The regulatory and investigative outcomes arising from the allegations in GPR's Reports are summarized as follows: (a) The Nevada Gaming Control Board completed an independent audit of RGC's random-number-generator systems on March 29, 2024, and issued a formal determination clearing RGC of any irregularity or manipulation in its electronic gaming platforms. No adverse find

IX. Permanent Injunction and Trading Bar Pursuant to the terms of the Settlement Agreement and Mutual Release dated January 6, 2025, the following injunctive and restrictive provisions have been agreed to by the parties: (a) GPR, Grizzly Peak Capital Partners LP, and Tobias Fenchurch have been permanently enjoined from republishing, redistributing, or otherwise disseminating the three Reports or any substantially sim

X. Statement of Responsibility GPR acknowledges its responsibility for the publication and dissemination of the three Reports and for the material inaccuracies contained therein. The Reports were authored by GPR's research team under the supervision and editorial direction of Tobias Fenchurch, Managing Member of GPR. The Reports were published on grizzlypeakresearch.com and were distributed to the public via GPR's so

XI. No Admission of Liability Beyond This Statement This Corrective Publication is issued pursuant to, and in accordance with, the Settlement Agreement and Mutual Release dated January 6, 2025, entered into by and among Redstone Gaming Corp., Grizzly Peak Research LLC, Grizzly Peak Capital Partners LP, and Tobias Fenchurch in connection with Case No. 24STCV-01892 in the Superior Court of California, County of Los Ang

XII. Duration and Availability This Corrective Publication shall remain posted on grizzlypeakresearch.com in a prominent location on the website's homepage, accessible to the general public without the requirement of a subscription, login, paywall, or any other access restriction, for a period of not less than twenty-four (24) months from the date of initial posting. Any removal, relocation, or diminution of the prom