I'll have June profit guesstimates out tomorrow. Still not sure how BDK IPO will be handled. We may get everything resolved by the end of tomorrow, allowing me to make a market sell on GLBSE and issue shares to those who've paid for their reservation, so the IPO will occur as scheduled.

Another note -- "Monthly Growth" doesn't include the amount received for selling BDK. I haven't spent much time thinking of how to account for both funds raised, and the variable amount due to shareholders when the time comes for a buyback in 8-18 months. The buyback amount due is not included as a liability, nor is the amount I've raised from BDK offerings recorded. I'll have that corrected by next month's report, and go back, fix old I/O reports. This report is not necessarily final and may change by the end of today in ~5 hours (I'm not expecting it to).

May Summary

Monthly Profit - ฿878.65BTC
Income - ฿991.96

• Loan interest - ฿580.57
• Gratuities - ฿2
• Securities Dividends - ฿143.5
• Equities sold at a gain - ฿256.29
• Misc - ฿9.6

Outgo - ฿113.31

• CD/BDK.BND dividends - ฿83.56
• Misc - ฿29.75

Other Info
Assets - 10,082.98 ($52,330.64)

• Loans (excl. default)   - ฿1,079.63
• Equities - ฿8,713.35
• Cash-on-Hand - ฿290.00

Liabilities - 4,986.21 ($25,878.45)

• BTC100 Pledge   - ฿10.07
• IBB Pledge - ฿0.46
• BTC Deposits - ฿1,952.51
• USD Deposits - ฿385.36
• Shareholder Div. - ฿1.91
• BDK.BND - ฿2,635.90

Equity - ฿5,096.76 ($26,452.19)
Operator Personal Expenditure - ฿9.94
BDK Growth for Month of March (profit - shareholder dividends - operator personal expenditure) - ฿829.17

Full details @ https://docs.google.com/spreadsheet/pub?key=0Ao892S4MOoDZdGZSbjJVd1ZTbFVLZE5aRE95bE91NVE&gid=18 (one last note -- Hermes funding will likely be rolled into funding for Kronos as a bond) (quit adding [/list] at the end of my post, SMF) (one post-last note -- The Q2 report in the spreadsheet will start displaying values as soon as I start the June I/O report tomorrow -- I'll use the current BTC per USD value while I don't have a Q2 end number so you can get more stats)

Assuming Nef agrees to unrestrict our securities, we'll be putting Hermes on the backburner for 2+ months, then reconsider development after that time. Trying to get a hold of him.

So I guess it's finally time to move on from Nethack.

If anyone has any more questions, ask me now. Going to log off and enjoy life for a while in ~1h. Still no updates on the equity swap where restrictions on our GLBSE securities would be lifted. Waiting for decisions from others involved with Icehill.

ETA: Logging off. Will check threads again before going to bed. Cheers!

He has already "limited" all securities related to me & JRO without warning and not because of a ToS violation, even though some of those assets have almost no impact on Hermes funding at all. That said, I just put some more money into GLBSE securities, so obviously, I'm not too worried anymore.

For those questioning whether or not there was a ToS violation, this is from #bitcoin-assets:
(10:15:18 AM) DeaDTerra: What's the reason BDK is being limited?
(10:15:19 AM) nefario: the limited assets were being used to fund a competitor to GLBSE
(10:15:28 AM) nefario: AND they were attempting to pinch our customers

After I posted that, I asked Nefario straight-up if he'd lock me out of GLBSE accounts entirely and he said no. I'm satisfied, and apologize for saying that (though it was a real concern at the time). It was just a heat-of-the-moment comment.

Alright. Let me update my position. I understand and apologize both for being unclear, and lazy.

Even if there is only one bond left on GLBSE, I will always pay bond-holders on GLBSE. They'll have the ability to switch if they please, and I'd certainly prefer it, but it will not be necessary.

ETA: Further clarification. While actions such as issuance of new shares (assuming contractually valid) will occur on the "primary" exchange, in the event of something like a buyback, I will pay holders of the security on BOTH exchanges the appropriate amount.

ETA2: I am not speaking for JRO, however. How he decides to go forward is his decision - so I'm only speaking for BDK & BDK.BND.

OP has been updated. If you want to know anything more, please ask me and I'll respond with a new reply and update the OP as well, so everyone's able to receive an update, too.

Got my magazine this morning, and now I have no time to read it. 

As I've stated multiple times, I will still be paying dividends to GLBSE bond-holders, at least until the "hard deadline" hits which'll likely be at least 2 months out, and I'll provide lots of updates, probably still pay dividends to bond-holders after the deadline if there's more than a few bonds out. However, we're now in talks with GLBSE again to keep things listed there with all our restrictions lifted. When we transfer, then, if GLBSE, Icehill (Kronos/Hermes), and I come to an agreement, however, there will be no need for a manual transfer scheme and it can be done fairly easy, where GLBSE bond-holders get a code, enter it on Hermes, and their bonds on GLBSE will disappear, reappear on Hermes.

I don't believe the contract states which exchange the bond must be listed on. While this may inconvenience bond-holders, if significant volume remains on GLBSE, I'll always pay dividends to bond-holders on GLBSE.

^ & ^^ - I'll make the suggestion to JRO when I call him this morning with everything which's happened in the past few hours. Though I've been the most publicly-talkative about this because I was still holding onto hope I could do a June 2nd IPO (there's still a sliver of hope for this, and for doing it on GLBSE) and wanted to prevent panic-sells (*mostly* succeeded, though there've certainly been some panic sells), I'm not majority stake-holder in Hermes nor do I do any dev work. I can pass stuff like this on to the dev team and JRO, but I'm no programmer and though I like the idea of open-source projects (frankly, I don't believe in absolute rights at all, especially not "IP rights"), don't know if it's the best route to go forward - so it's probably very good I'm not the person with the final say on how to go forward.   

Appreciate the suggestions. Will provide an update when I have one.

Please see updates @ https://bitcointalk.org/index.php?topic=84363.0

I'll be writing up a proper thread both when I have more info and when I don't have a backlog of stuff to respond to. I'm sorry I can't immediately update everyone on everything. Please direct any questions you have to that thread.

I can see why many companies keep their customers in the dark for a while after a major event happens, now. Things are changing constantly, and now I've provided misinformation in saying security-holders will necessarily have to go through the ghetto process of sending me their shares on GLBSE to verify, then manually sending everyone their shares on Hermes. It's now again on the table to do a GLBSE-Hermes equity swap which would allow all "limited" assets to be unlocked and have an easy-transfer feature implemented on GLBSE to allow Issuers to effectively export their asset (ETA: the way it would work - GLBSE would have an Issuer initiate a transfer, codes would be created, GLBSE would send us a list of codes and what they mean, then GLBSE users would get a code they enter on Hermes. The share-holder would have his shares on GLBSE destroyed, but have the same amount create on Hermes. The contract would remain in-tact.). GLBSE didn't originally take that off the table, we did, but now we have productive dialogue going again.

I probably should have let things settle more before giving a bunch of updates. Sorry about that. OP updated.

What happened?
Upon me (personally, not as a Hermes rep) sending an email to GLBSE talking about Hermes and what discussing what I would suggest we pay for an easy-transfer feature for Issuers to near-seamlessly switch securities from GLBSE to Hermes and talking about how much it'd otherwise cost us to "pinch" those GLBSE customers if the transfer feature weren't implemented, all BDK & JRO-related assets (BDK, BDK.BND, Zip.A, REBATE) were "limited," and Kronos.BND was canceled by the GLBSE team. This effectively cut us off from public fundraising on GLBSE. As such, we're working on solutions and are confident this will be resolved amicably.

As an investor in one of these securities, what should I know? Do I need to do anything?
If you currently hold BDK, BDK.BND, Zip.A, or REBATE, there is nothing you need to do right now. All dividends will be paid as scheduled - we are not restricted in that manner. Security-holders are still able to trade as they please, and there will be no changes to contracts. Eventually (this will either be in a few days or couple months depending if we can come to an agreement with GLBSE), we will be moving BDK & JRO securities over to Hermes. Assuming we get an agreement with GLBSE, this should be as easy as clicking "redeem," and entering the code given on Hermes. GLBSE security-holders will continue receiving dividends and be able to trade as they please. Security-holders will not be required to switch exchanges to receive dividends (I'm only speaking for BDK & BDK.BND here -- I don't have confirmation from JRO on what exactly he'll be doing). However, all new activity (issuance of shares, for example) by the Issuer will occur on the exchange we're primarily using. In the event of a buyback, securities on both exchanges will be purchased.

If you've reserved Kronos.BND units, Kronos.BND has been canceled, voiding your reservations. Nobody paid for those yet, so there's no need for us to issue refunds. BDK was a little more messy, as some people had already pre-paid. I've contacted those people and we've worked something out. If you have a remaining BDK reservation, two options exist -- you may keep your reservation and pay for shares to be issued on June 2nd (I currently do not know if this will be on GLBSE or Hermes), or you may cancel your reservation, which I completely understand. Everything should be ready to go as scheduled for the July 2nd offering and beyond. ETA: Nefario unlocked BDK and we had our offering as planned. I've been kept out of the loop lately, so I honestly (as of 6/9/12) don't know what's going on.

What the Hell is Hermes, anyway?
Hermes is, in part, a competing listing/trading platform. It is intended to have all the features of GLBSE with more devs able to spend more time correcting some lingering issues with GLBSE while adding on to that platform with features which emphasize the voice of Issuers for the sake of disclosure and marketing, high liquidity with minimal spreads, little or no transaction fees, and an additional feature-set for crowdfunding, Kickstarter-style. We'll make a full, more solid announcement within a month, possibly two.

How has this impacted Icehill & BDK operations?
The Kronos bond is canceled until further notice. Devs have been moved away from Kronos development and other projects to work on Hermes, under the initial assumption we needed to push out a service in alpha state immediately. But, this assumption may not be true as we work with GLBSE to come to agreement. Kronos launch has likely been delayed for at least a week, possibly longer. If we do not come to an agreement and we're still unable to fund-raise publicly through exchanges, we'll likely push out Hermes within a week with a basic platform, then building on it.

Since I've been unable to take the funds I originally planned for BDK & BDK.BND, I've had to cancel some buy reservations for others and have been trying to liquidate some of my GLBSE holdings - privately - so their value will not suddenly drop like a stone. BDK is not currently experiencing any liquidity problems.

Wait -- what? What's Icehill?
Please pardon us for having to make so many early announcements. Icehill is the name for what will be a publicly registered company in Iceland. Icehill handles all the implementations of software designed by RingCoin (Kronos, Hermes, ZipConf, and other projects in queue). It is not registered right now. The project leader is heading to Iceland shortly to talk to a lawyer working for Iceland's dominant payment processor. From there, we'll get Icehill registered and have a proper announcement for everyone. BDK is a xx% stakeholder in Icehill (this % will likely change frequently and perhaps dramatically within the next few months). (ETA: I'm in discussions with Icehill, now, and this situation may change depending on what we decide -- that is, instead of having bought equity in Icehill, BDK funds may be rolled over into another project on different terms I'll update everyone on once we're in agreement.)

So what's on the table of GLBSE & Icehill, anyway?
Right now, we're discussing an equity swap. For x% of Icehill, GLBSE gives us x% of GLBSE. Because we have to talk about Icehill and can't sell Hermes separately, things are a little complicated. However, relations between GLBSE & us are now at a friendly level, and our talks are productive. It's not a few people in a dark room shouting at each other through the scent of cigars and whiskey, threatening to call the prince of Nigeria to cut off the heads of the other party. Please give us more time to work out a deal. We appreciate the cooperation.

If you have questions beyond, feel free to ask here or PM them to me. I'll try to update people as soon as I see their questions.

-Ben

UPDATE: BDK & BDK.BND have been "limited" by GLBSE staff because we planned on launching a competing service in 2-3 months. Since we are no longer able to fund-raise on GLBSE, the June offering is partially canceled in that I can no longer post an open-market order. Those who reserved shares are welcome to either honor their reservation and have shares issued on Hermes, knowing Hermes will likely not have trade functionality for 2-3 weeks, or you can cancel your reservation. I am not accepting new reservations. As well, an alpha version of Hermes will be released within a few days, which all GLBSE-"limited" securities will be transferring to. This includes Zip.A, REBATE, BDK, and BDK.BND.

Dividends will still be paid to GLBSE security-holders. In roughly a month, I will need everyone to verify their holdings with me by sending their BDK or BDK.BND shares to me, which I'll keep, but then re-issue the same amount of shares to the person on Hermes. At that point, dividends will be paid exclusively on Hermes. There will be a few weeks notice before this happens. Please ask if you need any updates, clarifications, or have questions. I'm talking to ten people at a time, and forgetting what information I've given and what information I still need to give publicly. Sorry, and thanks for bearing with me.

Please read through the thread here if you need more info (feel free to skip the MPEx stuff):

Update added to OP:

"UPDATE: BDK & BDK.BND have been "limited" by GLBSE staff because we planned on launching a competing service in 2-3 months. Since we are no longer able to fund-raise on GLBSE, the June offering is partially canceled in that I can no longer post an open-market order. Those who reserved shares are welcome to either honor their reservation and have shares issued on Hermes, knowing Hermes will likely not have trade functionality for 2-3 weeks, or you can cancel your reservation. I am not accepting new reservations. As well, an alpha version of Hermes will be released within a few days, which all GLBSE-"limited" securities will be transferring to. This includes Zip.A, REBATE, BDK, and BDK.BND.

Dividends will still be paid to GLBSE security-holders while we figure out how we'll handle a transfer. Please ask if you need any updates, clarifications, or have questions. I'm talking to ten people at a time, and forgetting what information I've given and what information I still need to give publicly. Sorry, and thanks for bearing with me."

Anyway... BDK & BDK.BND won't require an immediate switch. There will be a soft deadline when Hermes has trade features implemented. Investors are encouraged to verify holdings and switch by that time, but dividends will still be paid normally to GLBSE holders. Since we need to release something in really an alpha stage, investors will likely only get a type of report page for a few days to a week or two. Then we'll have graphs, ability for users to trade on the market, stats on trades, etc. Once we're confident we at least have a competitive product, a hard deadline will be set (aiming for one to two months). This hard deadline is when I'll stop paying GLBSE security-holders. It's my understanding REBATE and Zip.A will also be going this route.

Since it's seeming too expensive to get our securities on GLBSE relisted and an easy-transfer feature implemented for Issuers (and their investors), verification will consist of all security-holders transferring their shares/bonds to the Issuer. In my case, that means I need your bonds and shares transferred to Kluge on GLBSE. Once I verify, I re-issue you shares on Hermes. Please don't do this until we have something functional up for Hermes, or you may not be able to collect dividends next Monday.


For BDK investors: BDK operations will continue normally, though I'm trying to sell off my GLBSE securities somewhat more quickly to ensure my funds & securities aren't "locked," BDK is not having any cashflow problems, and AFAIK, I've come to an agreement with everyone who pre-paid for June BDK shares. All CD-holders will be able to be paid on schedule, and dividends will continue to be paid to those due without issue. Two people wanted to keep their reservation and will be issued shares on Hermes, one person wanted a refund to roll into a larger CD. The offer is open to everyone who reserved BDK shares in June -- just tell me by June 1st and know Hermes shares may not be tradeable for up to three weeks, though dividends will be able to be paid.

Additionally, BDK/IOU will not be held liable for the Kronos bond deal since GLBSE cancelled the Kronos.BND IPO. Both Kronos & IOU/BDK are in agreement on this. Kronos has been delayed by a week or two, the bond will be delayed for a similar amount of time, and since we've had to launch so many services way ahead of schedule, the bond offering will likely be significantly larger than originally planned. However, this did give us a chance to re-do the bond offering, and there were already many actions I took which I regretted. In the future, it'll hopefully be able to pay a fixed amount of interest.


Cheers,

Ben

There was no ToS violation. Nefario has said this publicly in IRC. We had our securities delisted for funding a GLBSE competitor, which we've been planning for well over a month. It wasn't something instantaneous which happened after the delisting. As for listing on MPEX, I'd frankly rather just put it all on a spreadsheet. (sorry, MPOE-PR)

We're working on an amicable solution. I can totally understand GLBSE's position from a purely business standpoint. Idunno if it was the best way to go forward, but there's no reason for me to speculate on it. Though, if you were running a regional bank, and another fellow came up and asked for startup funding for his own bank, don't you think it'd be reasonable for the first bank who had the loan proposed to, to deny the loan? This isn't a very good analogy, though...

For now, we're discussing exchanging a stake in Hermes (or some type of equity swap) to get the securities transfer feature implemented on GLBSE and our securities relisted. There is room for both of our exchanges to thrive, and we'd both have a niche.

BDK.BND will be listed on Hermes within a couple weeks. I will be making a full announcement on Hermes, soon.

Relevant: https://bitcointalk.org/index.php?topic=77343.msg928697#msg928697

We have decided to list on Hermes once it's ready (I'll make a full announcement on Hermes within a week). All reservations made are currently void. We'll begin fundraising again once Hermes is ready for it.

Relevant: https://bitcointalk.org/index.php?topic=77343.msg928697#msg928697

GLBSE is objecting to us raising funds while we're developing a direct competitor to GLBSE, Hermes. Since BDK owns a stake in Hermes and no longer is fully able to utilize GLBSE, BDK, BDK.BND, Kronos.BND, Zip.A, and REBATE will all be moving.