| Author |
Thread Statistics | Show CCP posts - 0 post(s) |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
   |
Posted - 2009.06.15 14:18:00 -
[1]
Edited by: Saehta on 15/06/2009 14:31:17
NOTICE: This has not launched yet. The write up is for review currently. I will not honor any reservations made here as this is for discussion only. Bond will launch 19/6/2009
Contents:
1. Summary of bond offer
2. Involved Parties
3. Investment and return
4. Business plan
6. Statement of Assets
6. Full Disclosure of Risks
7. Full Disclosure of Main and Alts
8. Exit Strategy
9. The future
10. List of Investors
11. Questions
1.Introduction:
My name is Saehta and I have bonds that I would like to offer. For the past few weeks I have been scouting out low-sec for moons in relatively quite locations and found what I am looking for. The material composition of the moons, after reaction, are profitable based on current prices and trends of these materials over the past 3 months. I have liquidity for 1 tower but this complex reaction chain will require buying 3. This bond offer is to finance the endeavor.
2.Involved Parties:
While the station will be launched for my corp, it is only used for moon harvesting and reactions. I will be the sole person running the Bond.
3. Investment and return
The bond offer is for 1.2 bil to be paid back after 3 months
Total value of bond: 1200 million isk
Number of bonds: 120
Cost per bond: 10 million
Buy back: 10.6 million
Interest: 6% per month
The current plan is to buy back the bonds after a 3 month period based on projected returns though this may be extended depending on market values
4. Business Plan
After running a small POS, selling raw materials, I am ready to begin reactions. IÆve been surveying for several days and found several moons in a system that have something more than hydrocarbon o.O To be specific without being specific, the moons I have can host several simple reactions to them be moved to a complex reactor station. There are also additional R8 and R16 minerals that can be taken advantage of and sold in their raw form. I am looking to other systems still but, for now, IÆm focused on establishing these bases to take advantage of the location.
I plan on expanding after this bond offer to include other complex reaction, should I find matching minerals to the raw mats IÆm selling, and possibly manufacturing while my corp works on securing a 0.0 spot in our alliance. IÆll take (expand?) my business there when the time comes but for now, this is a learning and hopefully profitable venture.
Comparing MyPOS fuel cost to my projected sales, I see that I will make nearly triple the cost of maintenance. I expect to have made 1.2 billion by the end of the three months allowing plenty of cushion for repayment.
5. Statement of Assests
I have an estimated 350 mil ISK and a small fleet of Mining ships/barges IÆve collected as my skills increased. Combined with modules and raw mats, they have a rough worth of 300 mil. I also have BPOÆs of ships that I intend to research in the future for my pvp alt worth about 1 bil. In addition, I also have several station pieces and turrets bought at a cheap rate from a corp mate who lost a tower in another region, hence only a need for 1.2 bil.
|
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 14:19:00 -
[2]
Edited by: Saehta on 15/06/2009 14:20:01
6. Full Disclosure of Risks
A. Audit
B. Low-Sec
C. War-dec
D. Hit-by-bus
A. The most glaring risk to the community may be my refusal to Audit. From what I have seen on these boards, this is held up as a shining beacon of truth when it isnÆt. Beyond confirming skills, which mostly arenÆt needed in POS operation, they serve no purpose.
Instead of submitting to an audit, I will lock down the BPOÆs I have. I have an individual in mind for this that is respected by the community but I wish to speak with him in game first and hence the delay on the bond offer. After negotiating with him, I will announce it here and the bond will begin 1 day later to give investors time to decide.
The BPOÆs do not total the amount I am requesting, falling short by about 200 million. If this is upsetting to investors, I could reduce the bond and substitute my own funds but I like to have a cushion for the unknown (such as a hauler moving a tower getting ganked).
B. Obviously, the POS is in low-sec and that carries with it risk. I have done my best to minimize this by establishing safe points along two different routes I could use to move goods in addition to only operating during off-hours.
C. I have many corps friends who would love a good fight but I am keeping this operation as quiet as I can and stay out of local chat dialogue. I will have a formidable defense on the towers capable of inflicting some significant damage and the towers will be in a system away from trade routes and 0.0 entrances.
All of this canÆt stand up to someone doing it for the lulz with a large enough force. Should the towers be destroyed, the BPOÆs will be sold along with personal assets to repay investors.
D. Should I vanish, for whatever reason, the BPOÆs can be sold to recover loses and the holder can take a cut of 5% out for the service. Again though, the BPOÆs do not cover the entire bond so this is a risk at lost ISK
7. Full Disclosure of Main and Alts
My main is Saehta, she is fairly ænewÆ, as am I to eve, being 3 months old. I have a pvp alt named Phey Onat who is about 2 + months old. Beyond that, I have 4 alts with no skills who sit in trade hubs.
8. Exit Strategy
The current plan is to buy back the bonds at the price initially invested after a 3 month period based on projected returns though this may be extended depending on market values
9. The Future
I would like to get into module and ship production but I have a ways to go before I have both skills and knowledge for that. This is a way to get a foot in the door and learn more about T2 manufacturing. I am awaiting my corps transition to 0.0 which will bring about new dangers and opportunities and will likely spread out into the systems for sovereignty bonus.
10. List of Investors
Not taking reservations at this time
|
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 14:19:00 -
[3]
Edited by: Saehta on 15/06/2009 14:35:46
11. Questions:
I am reserving this section to answer any questions you may have.
Q: When is interest payed?
A: Interest will be payed out on the 15th of the first two months. On the third month the bonds will be bought back at 10.6 mil so that the third month of interest is included.
I would like to note that the actual bond will be issued in a new thread so no editing is done to it
Any changes to this thread will be noted here
Updates:
- Formatting, I posted quickly to get all of this in
- Corrected the term of the bond to the intended 3 month length
- Specified payments and buy back period in addition to formatting issues
|
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 14:25:00 -
[4]
Thank you for noticing this, I had been toying with projections and expectation of returns for hours and the post went through a lot of editing. My initial thought was to repay after 2 months but it wasnt realistic |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 14:32:00 -
[5]
I have BPO's as collateral as noted in the Risk segment |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 14:33:00 -
[6]
 Originally by: Kalrand
Originally by: Saehta
1. Summary of INSERT BUSINESS NAME
haha yeah, again my copy paste from the sticky failed me in editing. This isnt a new business going up. It's just me working |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 14:34:00 -
[7]
It may be interst is too low considering the low sec risk. If this is the general feeling I could raise it and extend the buy back period |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 14:54:00 -
[8]
I realize that to movers and shakers, this may seem like a small bond but it's backed by the sum of what i've been able to achieve so far in eve and doesnt feel small to me.
I am 'young' and spent most of my time reading guids while core skills trained. Moon Mining is what sparked my interest in an industrial career path and why I am here asking for funding. Am I looking to expand in the future, of course. I will have collateral then just as I do now so that investors do not need put blind faith in me.
|
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 15:02:00 -
[9]
Thank you for the question, I'll address them shortly in the 3rd post |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 15:30:00 -
[10]
Originally by: Estel Arador
I forgot to mention this:
have you tried getting funding from your corp?
Many people head out here on MD 'starting small' to 'establish a reputation', but it's probably better to get a successful business first and then come to MD saying "I've done this and this with money from my corp, now I want to expand and need more money than my corp can provide".
Originally by: Jadun
yo ho
I would go to a bank, like Ebank for that kind of isk.
best wishes jadun
Both of these are routes I may go. I haven't done much reading into Ebank yet but perhaps an evemail to one of their reps would be a better considering the shortfall of collateral |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 15:33:00 -
[11]
Originally by: cosmoray
The issue you will have here is twofold.
1. As you are new, not accepting an audit is a killer
2. Low sec operations are probably worse than 1. above.
That being said you may be able to get around this.
If you are willing to lockdown the 1B in BPO's with a third party you should get your funding.
But, 6% interest is not the way to go for this business. I suggest an IPO where you share the profits with your shareholders. You take a 40% management fee and the rest is paid out in dividends toi all shareholders.
For a low sec operation it is important that you share the success with the shareholders as this can only be assessed as very high risk!!
High risk requires potential of high return!
Thank you for the assessment of my situation. I'll give some looking into IPO management. As a fairly new person to the investment scene, I understood bonds better than IPO's and went this route. As the risk is greater than a research facility in high sec, I could look into better profit sharing |
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 16:50:00 -
[12]
I appreciate the offer evalf but this was presented to get a feel for questions. Based on suggestions I'm going to pull down this offer for now to either be reworked into an IPO or loan from Ebank. I feel that my current business model cannot adequately give investors the return needed to justify risk based on my current plan. I have some work to do on this for now.
Kazzac, I appreciate the offer and may take you up on it, or pay for it, after I rework the business model. While I still feel that collateral is better than an audit and still question an audits usefulness, I can see that the act of refusing to audit has a much more negative value than the positive of getting one done (it may not mean anything but at least you did it).
Thank you to those who raised questions and offered ways in which I might better finance this endeavor.
|
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 17:04:00 -
[13]
I dont see a problem with having an audit done but I'm afraid I didnt save the post. Give me a few to add in changes that were made through this discussion and I will repost it for transparency.
Kazzac, I'll try and contact you tonight in game about doing a simple audit.
|
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 17:19:00 -
[14]
Edited by: Saehta on 15/06/2009 17:22:57
Ty I'll add them in.
My intention was to just bring it down to be reworked. Appologies for any connotation this might have added.
|
Saehta
Sigillum Militum Xpisti
Novus Ordo Mundi
|
Posted - 2009.06.15 17:44:00 -
[15]
Appreciate the offer and wil do 
|
| |
|