Since DiabloD3 is trying to censor us, I figured to start a discussion about DMCs closing.
DiabloD3 decided to close his operation on Oct. 09 after an announcement on BitFunder. This is his announcement:
https://bitcointalk.org/index.php?topic=77469.msg3304465#msg3304465]What this means for Diablo Mining Company:
The SEC has gone after BitFunder (ab)using the legal process.
The SEC will go after all domestic and foreign Bitcoin stock markets that do business with Americans or American companies.
DMC is from America.
The majority of DMC shareholders are from America.
SEC rules generally prohibit foreign investors unless you jump through hoops.
DMC will no longer be allowed to trade on BitFunder.
DMC will no longer be able to pay dividends or participate in any form of share buyback.
Due to the fact that the SEC is trying to obliterate any Bitcoin startups by whatever means necessary, and that DMC has far exceeded its goal to payback investors, this marks the end of share buyback.
It is unlikely that Yochdog or Namworld will pay anything they owe to DMC. If anyone wants to buy their debt from me, they are welcome make an offer on a significant fraction of what is owed, however I believe it is unlikely anyone will. If this offer is completed before November 1st, and BitFunder hasn't shut down and hasn't delisted DMC, it will be paid out to the remaining shareholders.
As per the shareholder contract, DMC is now closing and liquidating.
The last 3,947 shares can still be traded 11:1 for ASICMINER shares until BitFunder shuts down or delists DMC or before November 1st. Anything remaining will be used to resolve DMC's debt.
Between 158% and 183% of the original investment has been repaid.
Although DMC has failed at its original goals, I wish everyone else luck.
The announcement was neither posted on BitFunder nor were there any reminders. During that time, a lot of discussion broke regarding BitFunder and thus the post about liquidation of DMC was unrecognized by many shareholders.
According to public records 2789 shares are still unredeemed.
On Nov 3rd DiabloD3 announced the invalidation of remaining DMC shares:
Diablo Mining Company is now closed. Any shares not redeemed before November 1st are now void.
In my opinion he breached his contract by voiding the shares. It does not say anything about a deadline and invalidation of shares in the contract.
Each share represents 0% of the ownership in the company assets. In the event of liquidation, 100% of the revenue from sales of the assets and 100% of the growth fund, minus any expenses incurred from the operation or liquidation of the company will be paid to shareholders.
He effectively stole 2789 shares from his share holders. Given the 11:1 ratio and estimated value of
BTC.5 of ASICMINER shares thats
BTC126.5.
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