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Spence Deninard
Federal Navy Academy Gallente Federation
0
|
Posted - 2012.12.14 11:57:00 -
[1] - Quote
Hi, please let me start by saying I pinched this IPO Plan from one that was put up by Hexxx in the wiki
[nonameyet] IPO Plan
GÇó Chapter 1 - Summary of [noname] GÇó Chapter 2 - Background on origins/idea/current business GÇó Chapter 3 - Coporate Governance GÇó Chapter 4 - The Business Plan (either beginning or expanding) GÇó Chapter 5 - Statement of Assets GÇó Chapter 6 - Full Disclosure of Risks GÇó Chapter 7 - Full Disclosure of Main and Alts GÇó Chapter 8 - Exit Strategy GÇó Chapter 9 - IPO Phases, Dividends, Market Cap GÇó Chapter 10 - FAQ
Chapter 0 - Summary of me
Well to start with, I should give a summary of myself. I started playing Eve again about 3 days ago. After 24 hours I purchased my first month subscription. I have tried playing in the past but haven't been able to get past the first few hours. I think they have changed the way the tutorials work because I found myself much more understanding and able to grasp what was happening around me. Anyway, so being an industrial type person I completed all of the career agents over the past couple of days, all 10 of each of their missions and got to dabble in all kinds of bits and pieces. I have also started running Level 1 missions and feel pretty confident to move to Level 2. Making money has been slow with an average salary of maybe 700k/hour. With the cost of skill books and setting up new ships my wallet generaly sits around the 400k mark. So I was lingering in the missions chat when I had a bit of a brain fart (that probably 1000 people before me have had). This leads us to:
Chapter 1 - Summary of [noname]
Simply put [noname] is to be a Salvaging Corporation. I think I will create it with a plain jane ALT. My character Spence will be joining a corporation (unknown which one yet) that is dedicated to mission running (l3 and l4). I will promote my services from within this largish corporation (80+ members) and take a portion of people's salvage/bounties as payment. I can already do this right now with my trusty Catalyst however one of the guys in the missions channel pointed out a dedicated ship, the sexy Noctis!. I checked the stats thinking it was a year of training away and lo and behold it's a single skill in Ore Industrial that I need (training as I write this). So I bought the skill but then I looked at the ship and it costs a whopping 98 million isk. I considered asking for handouts and decided against it, why not do a business offer?
Chapter 2 - Background on origins/idea/current business
I think I mentioned this in Chapter 1
Chapter 3 - Corporate Governance
Ok so I don't think there will be any governance. The offering will be for 200 million isk. Most any one person can invest is 30 million isk. I will hand out the shares in batches of 50 at 10 million each. There are 1000 shares in total in the corporation. I will pay out every week and payout will be for 25% of the Salvage Profit. 25% will go to myself as income and the remaining 50% will go back to the corporation for reinvestment. My grand plan is to have maybe 5 or 6 of these ships across different reaches of the galaxy so I can shuttle or jump clone (once I figure out jump clones) to get close to the mission runners quickly but for this business offering there will be one ship.
Chapter 4 - The Business Plan
I think I just answered part of this in Chapter 3 but here goes.
Short term
- Create alt character who creates a corporation called [noname] (holding corp) - Issue 1000 shares to investors - Use my salvage character Spence to join mission running corporation - Help with salvage with mission runners for a personal cut (haven't figured out the numbers here yet)
From what the mission guys were saying, salvaging a mission can net anywhere between 1-10 million isk. This may include loot however my services to corp members would include both loot and salvage if they liked with different arrangements (ie I keep salvage, hand over loot, split etc). Assuming this is correct I believe I will be putting in at least 5 hours a week towards salv/looting for members so assuming worst case I make 5 million a week off the 200m offering. For investors they get 25% of this or 1.25m. This constitutes .63% return on investment per week or 2.52% per month. I believe this is the absolute worst case scenario, I prefer to have people invest based on worst case rather than using inflated figures that I cannot commit to.
Long Term
- Share profit of cut, total of 75% transferred back to corporation with 25% to pay out and 50% to save and hopefully use to deploy more of these salvage ships across the galaxy - Win Eve
[For someone who runs a business in real life I know this is probably about the worst business plan known to man however I thought I would give it a go] |
Spence Deninard
Federal Navy Academy Gallente Federation
0
|
Posted - 2012.12.14 11:57:00 -
[2] - Quote
Chapter 5 - Statement of Assets
Ok, on a personal level my assets in game are maybe 10 million isk. I have lots of ships with specific roles and a pimped out (for a cheap noob) catalyst mission running ship and piles of loot to be melted at some point
In respect to this new business my only purchase would be the skill book at 1.4m and the skills leading up to it. Purchase for this offering would be for ship + fittings which won't cost 200m but I didn't want to make the numbers of shares etc difficult to figure out. 10 mil per 50 shares is very easy to remember imo. I want to look at insurance as I might be able to insure the ship for close to it's purchase price (will known after dt)
Chapter 6 - Full Disclosure of Main and Alts
This is my main character Spence. I am a bonafide noob. I don't have any alts at the moment but one will be born shortly after downtime and of course specified here. With this corporation on both my main and alternate character I have nothing that needs hiding I don't think so my details can be confirmed if needed.
Chapter 7 - Exit Strategy
I didn't think of this until reading this category. The investment is effectively in a ship, and ships can go boom. The offer was for 1 ship and 100m however I just increased it to 200m to allow for insurance. I don't know how much insurance costs or covers however in the event I am destroyed insurance plus the difference in funds I will have on hand should cover me for 1 replacement. The guys in missions have been very helpful with respect to being aware of respawning enemies for active mission locations which is another reason why I am using a more powerful ship and may also use warp core stabilizers if it works on the fitting. Alternatively I can be extra safe by just taking bookmarks off the mission runners and dealing with the locations after each mission is completed (or even use a fast frigate to shoot through and bookmark and just collect after mission completed/cancelled)
Chapter 8 - IPO Phases, Dividends, Market Cap
Total Number of Shares 1,000
Shares Allocated for IPO 1,000
Price Per Share 200,000 isk
Anticipated Market Capitalization 200,000,000
Dividend Schedule Weekly
Total Dividend Payment 0 to date
Projected Return per Dividend Payment(%) 0.63% per week minimum
IPO offering will consist of 1 phase
Phase 1 - Shares are sold to investors
... Potential for expansion if all goes well, expansion would be to place salvage ships across different areas of Eve or if business is good to even train up my final free alt as a second salvager on a different side of the world.
Chapter 8 - FAQ
Q: How do I know this isn't a scam? A: You feel all warm and tingly about this investment. Whilst the creator of this post hasn't put more than 30 minutes thought into this, you think it has merit and don't mind helping the little guy out.
Q: How do you know you'll be successful? A: Short of my ship and backup ship exploding I don't really see how I cannot be successful.
Q: Why are you doing this? A: Considered getting a loan but this sounds way more fun. I also don't like handouts. I believe in working for my keep even though this is sorta like a handout with conditions
Q: Do you intend to have an audit done at some point? A: Sure, anyone who wants to check the books or whatever hit me up.
Q: What's your background? A: Just an intaki warehouse. On a personal note I'm an Aussie, work in a private school full time alongside my personal business. Have a couple of kids and a new bunny rabbit (so cute!, pics available on demand)
Q: Will you ever buy back shares? A: I think when it's time for me to wrap this up I will do a final pay out of the shares at their current value. I will revalue them each week based on the reinvestment amount based on the net asset value of the operation at the specified point.
Q: Will you ever pay over 5% dividends? A: I have no idea. Maybe!
Q: What if someone War Decs [noname]? A: It wont' matter as it's just a holder corporation. If someone war declares the corporation that Spence is in, I will leave and find a new corporation of mission runners. There seem to be many around. |
Spence Deninard
Federal Navy Academy Gallente Federation
0
|
Posted - 2012.12.14 11:58:00 -
[3] - Quote
[reserved!] |
Reception
Center for Advanced Studies Gallente Federation
0
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Posted - 2012.12.14 12:10:00 -
[4] - Quote
Please send funds to this character
' Reception '
Remember, max of 30m per person
Please choose from an existing batch or create your own
Entrepreneur Batch - 5 Shares for a total of 1 million isk
Moneybags Batch - 50 shares for a total of 10 million isk
Platinum Batch - 150 shares for a total of 30 million isk |
Spence Deninard
Federal Navy Academy Gallente Federation
0
|
Posted - 2012.12.14 14:41:00 -
[5] - Quote
Just serviced my first customer in a level 3 mission. I haven't got the setup down pat yet and used a Catalyst however it most definitely proved fruitful with a 9,000,000 payment for services. For 1.5 hours this is superb. My minimum return estimate was 5m per week which has almost been doubled in a single short session.
Hopefully you guys can start buying shares or asking questions so I can get a real salvaging ship :) Please check my standings to see that I have actually been playing this game and done all of the things I said, and not just creating a random character to make a quick buck. |
Spence Deninard
Federal Navy Academy Gallente Federation
0
|
Posted - 2012.12.14 15:10:00 -
[6] - Quote
Just wanted to say after having a chat to the very helpful guys in SCC
This might not be all that much of an eye opener. It's a pretty pitiful amount compared to the other threads and it has been pointed out it could be seen as rep grinding or over complicating things etc. I thought I would have some fun with a bit of a business in Eve but if anyone out there instead wants to self fund me I would be happy to discuss terms and information with them along with whatever they need from me in respect to information, audit whatever.
I think I am a very little fish in a big pond here, akin to a homeless guy trying to barter the shirt off his back to the bank teller at Zurich. I don't want a hand out but anyone wanting to deal in a 200m unsecured loan please evemail me or post here. |
El 1974
Bendebeukers Green Rhino
62
|
Posted - 2012.12.14 19:10:00 -
[7] - Quote
Hi Spence,
welcome to Eve. You remember me of how I started myself in a destroyer, salvaging missions for the 'older' guys. They really helped me get a good start in Eve. I'll get you started with your first 30M. If you don't get the isk together to buy a Noctis let me know and I might be able to help you a bit more. A tip from a trader: look around where you can buy the ship and your equipment for a lower price then wherever you are flying. A Noctis in Jita is selling for about 89M. Furthermore don't just salvage the mission bring the loot to Jita and sell it there (Jita usually has the best prices for buying loot as well). Don't carry too much with you, 50M value max, or someone might try to gank you. And when you find something valuable, look around to see if anyone is paying even more than the Jita price.
Good luck on your adventures in New Eden. |
Huttan Funaila
Terminal Radioactivity Honey Badger Coalition
35
|
Posted - 2012.12.14 22:09:00 -
[8] - Quote
EACS is a corporation set up to make jump cloning easier. I've used their services. |
Styth spiting
Ion Corp. NightSong Directorate
118
|
Posted - 2012.12.14 22:31:00 -
[9] - Quote
You sound like you have a pretty good plan. It's well thought out and you have done your research.
Contact me in game. Instead of doing a loan what I can do is set you up with a noctis and T1 and T2 equipment.
Also the main money making with salvage is manufacturing rigs, since anyone you sell your materials to is going manufacture with them why not do this yourself? So what I can also do is include some researched BPO's for rigs to help get you started in your career. You will have several extra days of training to do (production efficiency V is required) but you can simply hold off on selling your salvage goods for a week or two and make your isk with the modules dropped.
I may also be interested in buying up your meta 1 - 4 item drops in exchange of isk payout, saving you quite a bit of isk in taxes and time.
So yeah, I think this would be a pretty good opportunity for you, and hopefully for myself as well. I'll be on most of the day so send me a chat request and maybe we can work something out. |
Every One
Big Diggers Relativity Alliance
24
|
Posted - 2012.12.14 23:15:00 -
[10] - Quote
170 mil transfered to Reception |
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Spence Deninard
ICQ Salvaging
0
|
Posted - 2012.12.14 23:19:00 -
[11] - Quote
I had some requests to show our bunny. Everyone meet EB
https://fbcdn-sphotos-c-a.akamaihd.net/hphotos-ak-snc6/227090_10151227562792669_1741274665_n.jpg https://fbcdn-sphotos-e-a.akamaihd.net/hphotos-ak-ash3/531891_10151227565172669_459145772_n.jpg https://fbcdn-sphotos-g-a.akamaihd.net/hphotos-ak-snc6/10112_10151227564907669_2067797268_n.jpg
:) |
Spence Deninard
ICQ Salvaging
0
|
Posted - 2012.12.14 23:34:00 -
[12] - Quote
Offering is complete:
El 1974 has purchased 150 shares for a total of 30,000,000 Every One has purchased 850 shares for a total of 170,000,000
Total of 1000 shares have been distributed at 0.2m per share
As long as it's acceptable to investors I would like first payout to be at the dawn of the new year 01/01/2013 with each payment a week after.
I want to thank everyone who contacted me. Quite a few sent different offers in game and I also want to thank those who posted here with advice. I am still happy to answer any questions. If El 1974 wants my API he's welcome to have it, it's been provided to EveryOne as well.
Kind Regards, Spence |
Every One
Big Diggers Relativity Alliance
24
|
Posted - 2012.12.15 00:07:00 -
[13] - Quote
Spence Deninard wrote: As long as it's acceptable to investors I would like first payout to be at the dawn of the new year 01/01/2013 with each payment a week after.
I agree.
|
El 1974
Bendebeukers Green Rhino
62
|
Posted - 2012.12.15 05:42:00 -
[14] - Quote
Spence Deninard wrote:Offering is complete:
El 1974 has purchased 150 shares for a total of 30,000,000 Every One has purchased 850 shares for a total of 170,000,000
Total of 1000 shares have been distributed at 0.2m per share
As long as it's acceptable to investors I would like first payout to be at the dawn of the new year 01/01/2013 with each payment a week after.
I want to thank everyone who contacted me. Quite a few sent different offers in game and I also want to thank those who posted here with advice. I am still happy to answer any questions. If El 1974 wants my API he's welcome to have it, it's been provided to EveryOne as well.
Kind Regards, Spence Ok, sounds fine to me.
I don't need API.
Fly safe. |
Ariana DeSoto
Merch Industrial Goonswarm Federation
86
|
Posted - 2012.12.15 13:29:00 -
[15] - Quote
100M sent for posting badass bunny picture. I don't always play EvE, but when I do, I prefer it to be a masochistic sandbox hell. Stay wardecked my friends. |
Spence Deninard
ICQ Salvaging
0
|
Posted - 2012.12.15 14:19:00 -
[16] - Quote
Confirming that Ariana did in fact send 100m for "posting badass bunny pictures'
Tomorrow, I will take a photo of bunny sitting near a Thank You Ariana sign |
Spence Deninard
ICQ Salvaging
0
|
Posted - 2012.12.16 04:29:00 -
[17] - Quote
Bunny thanking Ariana |
Ariana DeSoto
Merch Industrial Goonswarm Federation
86
|
Posted - 2012.12.16 14:13:00 -
[18] - Quote
Very cool. Good luck on your project. I don't always play EvE, but when I do, I prefer it to be a masochistic sandbox hell. Stay wardecked my friends. |
Prisoner No14
The Random Tangent
0
|
Posted - 2012.12.17 20:37:00 -
[19] - Quote
if you ever need someone to slavage missions for im farming up rep with this char and will let you salvage/loot everything in my lvl 4 missions. it is going to take me a week or so to get ready just add me as a contact in game. I am based in amar space though so its a bit of a journey to get to jita. also the person saying manufacturing the rigs is the way to go is correct. as long as it fits in your skill plan i would go that route as rig manufacturers are the people buying your salvage.
PS with the new mission changes i would not take a noctis into a lvl 4 mission until after the area has been cleared. you would get the aggro switched to you and die miserably. |
Spence Deninard
ICQ Salvaging
2
|
Posted - 2012.12.20 05:24:00 -
[20] - Quote
Hi everyone.
As I advised those who asked, when listing the potential profits of the business I purposely assumed worst case scenario. As expected we have been performing far above the expected standard.
The way I have structured the business (with respect to my customers) is as follows:
Option 1 : I collect your loot and salvage and then sell it back to you at 50% of it's market value (using eve-marketdata.com for calculations).
Option 2 : I collect your loot and salvage and then pay you 50% of it's value (based on the same tool above)
Now, either way is suitable to my system. Option 1 gives the business more capital to play with at a fairly generous level while Option 2 means a bit more work involved (finding buyers, selling goods and tying up capital in the form of inventory). Option 2 however potentially gets me a little bit more income as from what I have seen eve-marketdata.com is a little undervalued in some areas and only values at Jita prices.
I have found a rig builder who is happy to buy all of my salvage and meta 1/2 goods at market values which is fantastic. It means not having to babysit sales at Jita or divert my skill training towards trade right away. He doesn't deal in named goods however. If any of you have suggestions in this respect please feel free to let me know. I'm currently considering training an alt in trade to facilitate these sales however I know I will need a lot of sell orders (approx 120 unique items in inv already). I considered buying a dedicated trade character however I don't think I am there yet and I can probably make do with slower sales through limited trade skills building over time.
The reason for this forum post is firstly to look for some advice regarding the above and secondly to advise my investors I will be paying weekly starting from this week. The faster I generate a dividend, the faster that the 50% can be reinvested back into working capital (I have kept it separate for now to avoid confusion). At this point there is 48m available for dividend day with 25% of that going to my two investors (12m) and I now have approximately 50m worth of loot to attempt to sell (as per the above paragraph).
Thank you for your time. Spence. |
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Every One
Big Diggers Relativity Alliance
27
|
Posted - 2012.12.20 06:11:00 -
[21] - Quote
Spence Deninard wrote:Hi everyone. Well....hi...
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Fractal Muse
Dead's Prostitutes Test Friends Please Ignore
88
|
Posted - 2012.12.20 16:23:00 -
[22] - Quote
Spence Deninard wrote:Hi everyone. Now, either way is suitable to my system. Option 1 gives the business more capital to play with at a fairly generous level while Option 2 means a bit more work involved (finding buyers, selling goods and tying up capital in the form of inventory). Option 2 however potentially gets me a little bit more income as from what I have seen eve-marketdata.com is a little undervalued in some areas and only values at Jita prices.
The reason for this forum post is firstly to look for some advice regarding the above and secondly to advise my investors I will be paying weekly starting from this week. The faster I generate a dividend, the faster that the 50% can be reinvested back into working capital (I have kept it separate for now to avoid confusion). At this point there is 48m available for dividend day with 25% of that going to my two investors (12m) and I now have approximately 50m worth of loot to attempt to sell (as per the above paragraph).
To make your life easier I would suggest to use the 'estimated value' of items that EVE gives you. That'll net you a little more ISK when you sell the items yourself and your clients will be able to see, without any additional effort, that you are being true to your word.
Having to constantly check an external source for the current price of every item is going to become extremely time consuming. EVE has an easy way to estimate value so use that! It's typically a little below JITA market prices.
I would suggest that skilling up a trading alt is a good idea when you can start taking the time to put into it. Being able to trade in volume will become very useful and increase your ISK generation by a few % - which, in the long run, will become rather valuable.
I'm glad to read that your project is doing well! |
Spence Deninard
ICQ Salvaging
2
|
Posted - 2012.12.21 07:11:00 -
[23] - Quote
Fractal Muse wrote:To make your life easier I would suggest to use the 'estimated value' of items that EVE gives you. That'll net you a little more ISK when you sell the items yourself and your clients will be able to see, without any additional effort, that you are being true to your word.
If you have a look at www.eve-marketdata.com it has copy/paste fields. You copy all of the information straight from your cargohold into the notepad of eve-marketdata.com and it instantly compiles a list of prices and total value. The value seems to be more accurate than the one in Eve and it goes off Jita prices and also provides prices of +20%.
The way I work it, when I finish a salvage job with a client I export the assets into a spreadsheet and then copy/paste a portion of the spreadsheet into an evemail to the client so they can see every piece of loot along with the amount it was valued at, the total value and the amount paid to them (50% of value). They then have the option to suggest if something is out of order (such as a price being way off) and an adjustment can be made to suit both parties fairly.
From the end of the mission to the end of my paperwork is approximately 4 minutes. My spreadsheet allows me to see precisely where the loot is located, what it's worth, what my profit margin has been etc.
Quote:Having to constantly check an external source for the current price of every item is going to become extremely time consuming.
I agree, hence the convenience of the above. Check that site out, it really does seem incredible.
Quote:I would suggest that skilling up a trading alt is a good idea when you can start taking the time to put into it. Being able to trade in volume will become very useful and increase your ISK generation by a few % - which, in the long run, will become rather valuable.
Yes, except I will be trading in large quantities rather than volume. Most of the named stuff may only have a few items per so I would rather hold them as long as possible to have decent sized loot batches, but there will be hundreds of items.
Quote:I'm glad to read that your project is doing well!
Thank you kindly and thanks for the advice.
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Spence Deninard
ICQ Salvaging
2
|
Posted - 2012.12.22 12:44:00 -
[24] - Quote
Starting NAV Week 1 - 200,000,000
Cash on hand (main wallet) - 36,496,401.99 Cash on hand (secondary wallet) - 17,944,360.53
Purchased Assets: Noctis plus fittings - 102,733,995.69 Platinum Insurance - 22,674,602.40
Loot / Salvage Estimated Asset Value: Torrinos V - 25,750,218 Kaunokka II - 19,475,088 Ichoriya V - 33,163,678
NAV End of Week 1: 258,238,344.61
Purchased Assets + Cash on Hand = 179,849,360.61
Dividend to be paid out using this formula:
125,408,598.09 + 54,440,762.52 - 200,000,000 = -20,150,639.39 (purchased assets)+(cash on hand)-(starting balance) = DIVIDEND
This is due to the fact that a dividend cannot be paid on inventory and if I use cash on hand it means I am dividending with funds needed to pay clients. This formula should also ensure reinvested funds aren't just paid in future dividends as the starting balance will increase each time a dividend is paid and the corporation has 50% reinvested.
Fun Facts:
Estimated Value of all Salvage & Loot recovered - 170,407,099 Estimated Profit - 78,388,984 Payments made to clients for salvage & loot - 92,018,115
Number of jobs completed - 6 Number of clients serviced - 4 Number of new clients serviced - 4
TLDR : - We made 58,238,344.61 this week however these assets haven't yet been sold. - As a result no dividend this week - The corp wallets needs to exceed 74,591,401.91 before dividends can proceed. - My estimates always attempt to emulate worst case scenarios - Haven't started selling due to poor trade skills, will begin this week
|
Spence Deninard
ICQ Salvaging
2
|
Posted - 2013.01.08 10:16:00 -
[25] - Quote
Hi guys,
Unfortunately due to real life issues I won't be continuing this offer. I managed to spend from 31st Dec to 5th January in hospital and just haven't found the time to follow up with this business with all the RL stuff going on and to a lesser extent a lack of interest in tracking down people willing to let me salvage/loot.
Having said that, I have been playing with the markets and running Level 3 missions. I loaned myself some isk over the period to upgrade ships and have paid all but 10m back with interest.
I am closing this out as follows
Fund was for 200m isk
I am repaying 100m isk right now.
As assets loosen up and I make the money to do so I will pay 2 more payments of 75m each, generating effectively a 125% return on investment over the course of the offering which at this point has been going about 3 weeks.
I will be evemailing my 2 investors directly to advise them of the above.
Thank you for all the advice and guidance provided. Spence. |
Every One
Big Diggers
76
|
Posted - 2013.01.08 10:55:00 -
[26] - Quote
I feel bad for what happened to you, hope you get back to 100% soon. Food was bad? |
El 1974
Bendebeukers Green Rhino
76
|
Posted - 2013.01.08 13:01:00 -
[27] - Quote
Hi, I got the msg and the first payment. Sad to hear the bad news. Hope you'll be allright. |
Spence Deninard
ICQ Salvaging
2
|
Posted - 2013.01.08 14:42:00 -
[28] - Quote
Bunny is fine :)
We increased the rabbit run to the whole grassed area of the backyard as he is a very well behaved bunny.
Doctors don't know what's wrong but it isn't serious :) Thanks for the kind responses. |
Wescro
Powerful Friends in Low Sec
111
|
Posted - 2013.01.09 02:44:00 -
[29] - Quote
Best of luck to you. Your initial investors seem happy, I'll take a look if you ever do another IPO. You have a keyboard. Use it, or lose your mining ship.http://www.minerbumping.com/ |
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