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Starlight Horizons
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Posted - 2007.12.16 20:05:00 -
[1]
Starlight Horizons IPO Plan
ò Chapter 1 - Summary of STR-H
ò Chapter 2 - Background on origins/idea/current business
ò Chapter 3 - Corporate Governance
ò Chapter 4 - The Business Plan
ò Chapter 5 - Statement of Assets
ò Chapter 6 - Full Disclosure of Risks
ò Chapter 7 - Exit Strategy
ò Chapter 8 û IPO Phases, Dividends, Market Cap
ò Chapter 9 - FAQ
Chapter 1 - Summary of Starlight Horizons Incorporated (STR-H)
STR-H is a manufacturing and trading Corporation. The goal of STR-H is to maximize the availability of commodities in Gallente and Amarr Space. STR-H will be selling low to mid value T1 commodities through manufacturing and mid to high value T2 commodities through trade.
Chapter 2 - Background on origins/idea/current business
The background of this business plan is nothing new; most of my principles date back to other successful IPOÆs launched between January and February of 2007. After investing over 2 Billion isk in other IPOÆs and speaking with the CEOÆs I feel that I am ready to build upon their ideas and include some of my own.
The idea is based off of my market research in Gallente and Amarr Space over the last three months. I have a mission runner who runs level 4 missions for each of those races, and I am very aware of the loot that drops as well as which ores are available in each location. I have built several spreadsheets to break down each module I have looted to find its basic value. By that I am referring to how much I could either sell the module for on the market or how much I could sell the minerals if reprocessed. In October I conducted an experiment with 4 modules that I found were being sold on the market for less than the minerals were worth. With a starting base of 150 Million isk I used buy orders with my entire capital. I also found that modules vary in price between regions, example was item A sold for 2,000 isk in Gallente Space on sell orders and there was buy orders in Amarr Space for 6,000 isk. I know, most traders try and separate trading from hauling, but I was tripling my investment with this single module. I was very intrigued by this finding and soon started buying different modules. After one month I had turned my 150 million isk into a respectful 475 million. However, I was doing a lot of hauling, often times spending 4 to 6 hours on the weekend picking everything up and taking it the 10 jumps to sell it. I got burnt out and decided this plan wasnÆt a long term solution.
This brings me to my new plan, which uses the same principles, but not on a region wide level. I have identified 8 modules in my current base of operations that I have been buying with buy orders within a 1 jump limit which refine for more value than purchase cost. I have also identified 12 T1 modules that will make at least 20% profit in the current market if I purchased the minerals from sell orders! I will not be doing that of course, as 85% of all my minerals will come from refined modules. The reason this works is because I am not competing with 150 other people in Jita struggling to make 1-5% margins.
STR-H currently is a one member corporation. That is because this is an alt I started for this very reason. I will be using 5 characters to run this IPO, the main one I will disclose is my main. My main is Nummb, who has always been in a NPC corporation. I have 4 accounts and all of the character slots are full. I have flown PvP in a 0.0 corp with one and mined in 0.0 with another. One is my Amarr mission runner and one is my Gallente mission runner. The rest are merely market watchers. The pilots I used for the 0.0 corp I was in are Anini and Akira Miyatake. I was in Four Rings and the only reason I left was due to military operations in Southeast Asia. Upon my return from my military deployment I took a break and decided that I didnÆt want to go back into 0.0 right away.
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Starlight Horizons
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Posted - 2007.12.16 20:06:00 -
[2]
Chapter 3 - Corporate Governance
The corporate governance will remain intact; no additional people will be invited. I will be the only individual with Wallet Access, although, if it is requested, then I will gladly let in an Auditor from EBANK to oversee accounts.
Chapter 4 - The Business Plan
I have over 50 T1 BPOÆs all researched to ME 30 and PE 10 which I will use to manufacture modules when I deem them marketable. I will not build anything that will not sell for at least 20% over mineral purchase price. If I find that during a given week that none of my production will meet this goal then I will simply sell 30% of my minerals during that week to maintain my target income.
Phase 1: Present the IPO and sell shares. I will use 60% of the initial capital to expand my current buy orders. I have two markets picked out to begin buying modules and Nummb has a transport ship that I will use to haul the modules between the two. I have carefully selected modules that were not affected by the compression change and I will continue to evaluate modules if additional changes are made by CCP. Timeframe: (10 day cycles)
Phase 2: I will haul after every 10 day cycle, or use contracts depending on the volume acquired during the cycle. I will keep an exact record of every purchase during the cycle and evaluate the value before hauling. If it is more profitable to just resell within the current region then I will. Once everything is in my base I will refine and calculate my mineral value.
Phase 3: I will check which of my BPOÆs will meet my requirements as outlined above and begin production. I watch volume very closely, I will not flood the market with 2,000 modules if it currently only goes through 100 a day.
Phase 4: I will check my two market hubs and Jita for T2 modules once a week. I will take 35% of the initial capital and buy T2 modules in Jita which have favorable markets where I operate. I will set a hard cap of 10% of the 35% on any one item. I plan to purchase between 5 and 10 different T2 items to protect myself from over exposure. I will haul and use sell orders in my two operating markets and monitor them during the week. I will NEVER haul from Jita on a Sunday, but that wonÆt stop me from buying. I will evaluate sells performance and buy additional modules to keep my sell orders going. I fully expect to change which modules I sell on a weekly basis, so I will remain flexible and keep the 10% rule in effect at all times.
Phase 5: Approximately 5 days before the end of each month I will conduct analysis on how much money I have in buy and sell orders, how much value I have in minerals on hand and how much isk is on hand. I will send the dividend isk to my personal wallet so that I know exactly how much isk is remaining to continue operations. I will pay the dividend between the 3rd and 5th of each month depending solely on server status.
Chapter 5 - Statement of Assets
All of my BPOÆs will become property of the corporation and will be locked down with a vote after all the shares have been purchased. NummbÆs Transport Ship and Hulk will become corp assets as well as they will be used throughout the IPO. I like to mine semi-afk on my laptop while watching t.v. with the wife, nothing major but its mindless and easy income.
Chapter 6 - Full Disclosure of Risks
There are a few risks associated with this IPO, mainly compression/refining change by CCP, destruction of my transport ship, mineral market flux, rl illness and military operations.
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Starlight Horizons
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Posted - 2007.12.16 20:07:00 -
[3]
Compression/Refining Change: Depending on the severity of the change I will change my procedures as necessary to facilitate the movement of goods to my refining station. Nummb is just the freighter skill book away from flying freighters and if that became the only viable alternative then I would place a vote to shareholders to cover the cost of purchasing the freighter and include it as corp assets. I will pay for the skill book out of pocket.
Destruction of ships: I never haul afk and all of my operations will take place in high sec. Nummb is in an NPC corp and therefore cannot be war decced. I consider myself a veteran transport ship pilot and I have successfully flown through gate camps before. Should a loss happen though I will make a decision after reviewing the incident if it was my fault or due to game mechanics and or lose of connection. I have enough isk in my EBANK account to cover buying a new ship and if I am at fault I will purchase out of pocket.
Mineral flux: If minerals flux widely in price this could complicate operations. I will hedge my bets accordingly and keep a reserve of minerals on hand at all times. Nummb has over 250,000 shares in BSAC and I have the ability to create mineral contracts from Block if needed.
Real Life Illness: I will post or have my wife post if a rl illness causes me to halt operations for more than 2 consecutive days.
Military Operations: I am in the US Military, it is no secret and everyone who has known me in game already knows as much. I am currently stationed in Virginia and I am not in a deployable position due to a compassionate reassignment. For those of you not in the military that means nothing, for those who are, itÆs a family member who is getting better and in the mean time I am undeployable. We have several other military folks here, I can share my AKO address with one of them but I would prefer not to disclose it on the forums.
Scamming:
Every IPO has a risk of scamming. I will not go to any great lengths to prove to anyone I am not a scammer but I will disclose the following information. My main is Nummb, my notable alts include Starlight Horizons, Anini, and Akira Miyatake. I believe that Ricdic might now one or two of my other alts due to them having EBANK accounts and I am making no attempt to hide any of my characters from the public.
I will hold money in my EBANK Account to cover fees and serve as back-up security for this IPO. I will request a member of EBANK to serve as a consultant and auditor if the investors want it. If the investors want API disclosure to EBANK and for EBANK to audit my corporation I will use corporate funds to pay for this service. I will pay the initial 20 million isk to EBANK to set-up a contract for this purpose and for every month or quarter an audit is requested the payment will come from corporate funds.
Chapter 7 - Exit Strategy
I will buy back shares starting in March 2007. This is a long term IPO that I fully expect to run for over a year. However, I will buy back shares from investors who request it. I am expecting this to be a growth corporation with NAV increasing over the IPO offering. When I conduct buy backs I will offer 95% of IPO. I will set a limit of 5% of shares to be bought back each month so as to not hamstring the operations.
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Starlight Horizons
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Posted - 2007.12.16 20:08:00 -
[4]
If everything fails I will turn over all my sellable assets to EBANK. This includes all my BPOÆs and ships mentioned. If absolutely necessary I will sell one of my other characters for isk to pay off investors. I will not fail, I am a NCO, I will Adept, Improvise and Overcome!
Chapter 8 - IPO Phases, Dividends, Market Cap
Total Number of Shares
100,000
Shares Allocated for IPO
49,999
Price Per Share
100,000
Anticipated Market Capitalization
4,999,900,000
Dividend Schedule
Between the 3rd and 5th of each month starting in February 2008.
Total Dividend Payment
349,993,000 per month then moving up as the corp grows.
Projected Return per Dividend Payment(%)
7%
Projected Return per Share
3,499.93
Dividends:
I have already created 100,000 shares and sent 50,001 to Nummb so that I control 51% of the corp. However, what I will do is take the dividends Nummb receives and divide them in half. The first half will go in my EBANK account so that I am maxing out my return from EBANK. The second half will be returned to the corp wallet and added in as corp growth. I will continue to adjust the value the corp based only on the shares purchased in the IPO. So, when I make more than what is needed for a 7% dividend I will make a post stating the new NAV. If I make enough to cover two months worth of dividends then I will place of vote to the shareholders if they want the additional dividend now or should it be saved to repurchase shares.
Chapter 9 - FAQ
Q: How do I know this isn't a scam?
A: You donÆt; however, I will give my gmail account and cell phone number to individuals who want to verify who I am. Also, I will only give my AKO address to other members of the military.
Q: How do you know you'll be successful?
A: I donÆt. I will make one promise though, I will not lie to the investors. If I am not successful I will do everything in my power to pay back the IPO.
Q: Why are you doing this?
A: I am an analyst at work and I tend to think analytically at home as well. I am taking college courses in economics and while all the theories donÆt hold true, some do and I enjoy Eve for what it is and what it offers.
Q: Do you intend to have an audit done at some point?
A: Yes, as outlined in the plan I will pay an initial 20 million isk to EBANK out of pocket as a sign of good faith. If additional audits are requesting, I expect the corp to pay EBANK the fair market value for conducting this procedure.
Q: What's your background?
A: I have done it all, Mining, Refining, PvP, Missions, Manufacturing and Trading. I donÆt do very much PvP, and when I do itÆs with an alt flying a T1 cruiser hunting down Pirates.
Q: Will you ever buy back shares?
A: Shares will be bought back beginning in March 2008. I will limit the number of shares bought back to 5% of all outstanding shares currently available. I will offer those shares bought back first to the remaining shareholders and if they decline then I will offer them to the public.
Q: Will you ever pay over 7% dividends?
A: At first no, because I am planning on growing the business. I will give the investors the option however of receiving larger payouts instead of an increased NAV.
Q: What if someone War Decs STR-H?
A: This will have no effect as STR-H is a one man corp and Starlight Horizons will not be leaving the station. Everything will be conducted through my main and other alts in different corps.
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I will post with Nummb to verify that this is an alt.
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Nummb
Amarr
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Posted - 2007.12.16 20:09:00 -
[5]
Starlight Horizons is my alt who was set-up to run this operation. I will be able to check evemail in approximately 1.5 hours, due to me posting this from work.
 Originally by: Shadarle
I hate happy things, that's why I kill puppy dogs and kittens for fun.
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Ray McCormack
hirr
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Posted - 2007.12.16 20:18:00 -
[6]
1b reserved pending details of audit, please.
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Kazuo Ishiguro
House of Marbles
Zzz
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Posted - 2007.12.16 20:35:00 -
[7]
There's no point locking down the BPOs if you intend to retain control of the corp by keeping half the shares. I suggest setting up a holding corp for issuing dividends, and using a separate corp for the actual production, if you can arrange for a second alt to run it.
I'd like to reserve 500m worth of shares, please.
My research services
Spreadsheets: Top speed calculation - Halo Implant stats |
Ahn Riane
Blue Star Surveying and Mapping
Zzz
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Posted - 2007.12.16 20:40:00 -
[8]
Is there a limit for Isk invested by a single Investor?
Sounds good so far.
I'm willing to put 200m in.
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Nummb
Amarr
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Posted - 2007.12.16 20:44:00 -
[9]
I will make contact about getting the audit done.
About the BPO thing, I wasn't 100% sure how that worked. I just figured if the BPO's were locked down then that would provide additional security, but you pointed out that if I control 1 share more than half of the corp then I don't need to lock down.
I will take another look, mostly this was included as a means of showing people who invest that I actually have the BPO's.
I am leaving work in 15 minutes, and its a 25 minute drive, so I will check in game around 4:30 to 5pm Eastern Time Zone.
Originally by: Shadarle
I hate happy things, that's why I kill puppy dogs and kittens for fun.
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Nummb
Amarr
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Posted - 2007.12.16 20:45:00 -
[10]
Originally by: Ahn Riane
Is there a limit for Isk invested by a single Investor?
Sounds good so far.
I'm willing to put 200m in.
I hadn't considered it at this point, Ray has already bookmarked 1 billion once the audit is complete, so I would imagine thats a good baseline for a limit.
Originally by: Shadarle
I hate happy things, that's why I kill puppy dogs and kittens for fun.
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NeoTrade
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Posted - 2007.12.16 22:18:00 -
[11]
Sounds good to me. I will reserve 200mil of shares - pending the confirmation regarding a properly locked down BPO.
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Dr Slurm
General Commodities
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Posted - 2007.12.16 22:23:00 -
[12]
I look forward to the audit. Hopefully there are some shares left after it comes out.
It's better then Quafe! |
Nummb
Amarr
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Posted - 2007.12.16 22:33:00 -
[13]
I have contacted members of EBANK in regards to the audit and I will let everyone know as soon as I get feedback from them.
At this point I will accept reservations on the forums or via evemail.
Thank you for the feedback, I hope to have this up and running in the next few days, especially before the Christmas Holidays begin.
Originally by: Shadarle
I hate happy things, that's why I kill puppy dogs and kittens for fun.
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Shadarle
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Posted - 2007.12.16 22:44:00 -
[14]
I'm a bit unsure of your buyback procedures. You say it is a growth fund... but you say you are buying back at 95% of IPO. This seems contradictory...
I may be in for 1 billion, but I'd like you to go over buybacks again a bit more detailed with perhaps some examples.
Also, I'd like you to explain this:
Quote:
If I make enough to cover two months worth of dividends then I will place of vote to the shareholders if they want the additional dividend now or should it be saved to repurchase shares.
Tanking Setups Compared
Stacking Penalty / Resists Explained |
The Jeckle
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Posted - 2007.12.16 23:39:00 -
[15]
Eve mail sent regarding a share reservation. |
Fader Bane
Black Knight Buccaneers
Daisho Syndicate
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Posted - 2007.12.17 00:35:00 -
[16]
any desire for future listing on one of the eve stock exchanges?
________________________________________
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Kwint Sommer
Incoherent Inc
Otaku Invasion
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Posted - 2007.12.17 00:49:00 -
[17]
Congratulations on your first IPO, I too am starting my first big business.
I would like to reserve 1 Billion in shares.
Funds will be sent once the audit results come in.
___________________________________________
5% Mining Implants & 5% Manufacturing Implants *From 110M to 150M |
Charlie Drago
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Posted - 2007.12.17 01:51:00 -
[18]
I would like to reserve 200m in shares
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Nummb
Amarr
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Posted - 2007.12.17 02:18:00 -
[19]
Originally by: Shadarle
I'm a bit unsure of your buyback procedures. You say it is a growth fund... but you say you are buying back at 95% of IPO. This seems contradictory...
I may be in for 1 billion, but I'd like you to go over buybacks again a bit more detailed with perhaps some examples.
Also, I'd like you to explain this:
Quote:
If I make enough to cover two months worth of dividends then I will place of vote to the shareholders if they want the additional dividend now or should it be saved to repurchase shares.
Alright, let me tackle this one question at a time.
Question 1: I want it to be a growth fund, I will run it as such; however, if someone wants to sell there shares back before I have time to grow the fund then I will only be able to offer 95% IPO. I will look into listing on the exchange and once I post the monthly NAV in theory no one would sell back to me at 95% IPO (100,000) if each share is now worth (107,000) by February and (114,490) by March. That is going off of earning 7% earning per share value.
Now, if I am calculating that wrong, please correct me.
Question 2: What I was trying to say was that I feel that I can make more than 7% earnings within a month. I figured I could pay the normal dividend as promised then that gives me a few options. If my target is 349,993,000 and I actually make 800,000,000 that month I now have more isk on hand than I had intended for dividends. Does this become factored into the new NAV or do I continue to pay dividends until I am back to the starting capital I started the IPO with?
Originally by: Shadarle
I hate happy things, that's why I kill puppy dogs and kittens for fun.
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Shadarle
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Posted - 2007.12.17 02:50:00 -
[20]
Originally by: Nummb
Originally by: Shadarle
I'm a bit unsure of your buyback procedures. You say it is a growth fund... but you say you are buying back at 95% of IPO. This seems contradictory...
I may be in for 1 billion, but I'd like you to go over buybacks again a bit more detailed with perhaps some examples.
Also, I'd like you to explain this:
Quote:
If I make enough to cover two months worth of dividends then I will place of vote to the shareholders if they want the additional dividend now or should it be saved to repurchase shares.
Alright, let me tackle this one question at a time.
Question 1: I want it to be a growth fund, I will run it as such; however, if someone wants to sell there shares back before I have time to grow the fund then I will only be able to offer 95% IPO. I will look into listing on the exchange and once I post the monthly NAV in theory no one would sell back to me at 95% IPO (100,000) if each share is now worth (107,000) by February and (114,490) by March. That is going off of earning 7% earning per share value.
Now, if I am calculating that wrong, please correct me.
Question 2: What I was trying to say was that I feel that I can make more than 7% earnings within a month. I figured I could pay the normal dividend as promised then that gives me a few options. If my target is 349,993,000 and I actually make 800,000,000 that month I now have more isk on hand than I had intended for dividends. Does this become factored into the new NAV or do I continue to pay dividends until I am back to the starting capital I started the IPO with?
Now I'm a little confused, this is more of a hybrid correct? It is first a dividend paying IPO up to 7% or so (your target) and then afterwards you would like it to be a growth fund. So if you make 14% profits 7% would go to divs and 7% would then be added to NAV? If this is your plan then I think it is a decent enough plan and I see no problem doing it this way.
If I am correct I would def like to lock in my 1 bill offer from before.
I would say though that if you are going to pay out original IPO price for a buyback then you can't call yourself a growth fund imo. I would suggest you either pay out 90% of NAV or pay out 100% of IPO with buyback. 95% of IPO is just not right if you are increasing NAV. But that's just my opinion.
Tanking Setups Compared
Stacking Penalty / Resists Explained |
Nummb
Amarr
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Posted - 2007.12.17 03:07:00 -
[21]
I know you have heard this many times before, but yes you are right. This will be a hybrid business plan that focuses on growth.
I used the format from another IPO as a guide and I think I confused myself with what I really wanted to say.
Beginning in March 2008 I will offer a buy back option at 90% NAV or 100% IPO.
I plan on being very successful and the only people I foresee selling their shares back or those people who just happen to need isk.
Originally by: Shadarle
I hate happy things, that's why I kill puppy dogs and kittens for fun.
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VO Mathilda
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Posted - 2007.12.17 03:22:00 -
[22]
250 mill reserved pending audit details.
Regards.
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Shadarle
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Posted - 2007.12.17 03:23:00 -
[23]
Originally by: Nummb
I know you have heard this many times before, but yes you are right. This will be a hybrid business plan that focuses on growth.
I used the format from another IPO as a guide and I think I confused myself with what I really wanted to say.
Beginning in March 2008 I will offer a buy back option at 90% NAV or 100% IPO.
I plan on being very successful and the only people I foresee selling their shares back or those people who just happen to need isk.
Sounds great 
Just let us know when you want the money.
Tanking Setups Compared
Stacking Penalty / Resists Explained |
Hexxx
Minmatar
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Posted - 2007.12.17 03:25:00 -
[24]
Originally by: Nummb
I know you have heard this many times before, but yes you are right. This will be a hybrid business plan that focuses on growth.
I used the format from another IPO as a guide and I think I confused myself with what I really wanted to say.
Beginning in March 2008 I will offer a buy back option at 90% NAV or 100% IPO.
I plan on being very successful and the only people I foresee selling their shares back or those people who just happen to need isk.
The format is a direct lift from my IPO template. You can find the original template by following the link in my signature below. It includes discussion on what belongs in the different areas.
Consulting, IPO Template, and Stock/Bond definitions.
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Shadarle
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Posted - 2007.12.17 03:29:00 -
[25]
Originally by: Hexxx
The format is a direct lift from my IPO template. You can find the original template by following the link in my signature below. It includes discussion on what belongs in the different areas.
I believe he meant the payout format, of x% in divs and the rest in growth. But again, I could be wrong. I know the template was yours though Hexxx, just don't think that is what he was referring to in the quoted section.
Tanking Setups Compared
Stacking Penalty / Resists Explained |
Nummb
Amarr
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Posted - 2007.12.17 03:50:00 -
[26]
I did use Hexxx's IPO format and I tried to give him and EBANK credit at every possible opportunity.
I have done up a quick spreadsheet of the number of people who have requested shares and currently 54,250 shares have been "reserved".
I feel that by capping the max number of shares per person @ 10,000 with a 1 Billion isk limit I can actually sell some of the other shares I was reserving for myself as a way to lock down the BPO's. I have 50,501 shares on Nummb and 50,499 on Starlight Horizons that belong to the Corp.
I am talking with Hexxx right now, I will post an answer as soon as we finish talking.
Originally by: Shadarle
I hate happy things, that's why I kill puppy dogs and kittens for fun.
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Hexxx
Minmatar
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Posted - 2007.12.17 04:03:00 -
[27]
Originally by: Shadarle
Originally by: Hexxx
The format is a direct lift from my IPO template. You can find the original template by following the link in my signature below. It includes discussion on what belongs in the different areas.
I believe he meant the payout format, of x% in divs and the rest in growth. But again, I could be wrong. I know the template was yours though Hexxx, just don't think that is what he was referring to in the quoted section.
Gah...you nailed me on this one Shadarle...I'm posting a bit late here and I've had a beer or two. Just enough to make me a bit foggy.
Must read more carefully next time. 
Consulting, IPO Template, and Stock/Bond definitions.
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Shae Laurel
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Posted - 2007.12.17 06:52:00 -
[28]
If still possible, I would like to reserve 200 mill worth of shares. Give me an IGM if it's possible.
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Shinhan
Phoenix Knights
Dark Nebula Galactic Empire
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Posted - 2007.12.17 07:54:00 -
[29]
Originally by: Nummb
I did use Hexxx's IPO format and I tried to give him and EBANK credit at every possible opportunity.
I have done up a quick spreadsheet of the number of people who have requested shares and currently 54,250 shares have been "reserved".
I feel that by capping the max number of shares per person @ 10,000 with a 1 Billion isk limit I can actually sell some of the other shares I was reserving for myself as a way to lock down the BPO's. I have 50,501 shares on Nummb and 50,499 on Starlight Horizons that belong to the Corp.
I am talking with Hexxx right now, I will post an answer as soon as we finish talking.
Is this a new record?
107% of available shares sold out in only 7 hours and 17 minutes.
--
Selling apples, 1 signature each.
ѼѼѼѼѼѼѼ |
Finedele
Marquie-X Corp
Majesta Empire
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Posted - 2007.12.17 13:14:00 -
[30]
Edited by: Finedele on 17/12/2007 13:14:43
I am aware that all shares are already soldout or better said reserved... but, i'd like to mark my interest if anyone decides to not investing :) or maybe you are going to increase number of shares. we'll see.
placing order for 500 shares
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