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VMC/AMC Merger
This is a Pre-Merger VMC Offering.
(This Is For Community Review Only)
The Final Offering May Be DIFFERENT
(This Document Is For Community Review Only And May Contain Errors)
Version 4 7/5/13
Edit: Updated "How to buy shares" to include the exchange of AMC shares
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Introduction
ActiveMining (AM) is a virtual identity representing all the profits of the Active Mining Corporation and is totally owned by it. The Active Mining Corporation's business includes cryptocoin mining and sales of self-built ASIC devices through its wholly owned subsidiary Virtual Mining Corporation (VMC).
Currently, it is expected for interested investors to hold 10,000,000 AM shares (40% of the profits), while Active Mining Corporation owner(s) shall hold 15,000,000 AM shares (60% of the profits), for a total of 25,000,000 AM virtual shares that represent 100% of the global profits of the Active Mining Corporation.
The first 10,000,000 ActiveMining shares bought by interested investors have the privilege of getting all profits until BTC0.0025/share is paid, starting from the day when dividends begin to be paid.
The issuing of more AM shares will be allowed in the future, provided there is strong economic justification, mainly on the basis of covering emergent capital needs. Existing shareholders also get the first choice for buying new shares before they are sold on the open market. The volume of new shares shall be kept at a minimum as much as possible and the pricing of them should be such that the total value of all Active Mining Corporation's assets (tangible and intangible) per AM share does not diminish, protecting shareholders as much as possible from future dilution of value.
How to buy shares
AM shares will be sold on BitFunder and BTCT.CO and any other exchange, following asset approval or exchanged of AMC shares. Existing Active Mining Cooperative (AMC) shareholders will be entitled to trade their shares for ActiveMining shares, on a 1:1 basis.
Dividend payment
The global Active Mining Corporation's income, including mining income, hardware sales via bitcoins, other cryptocoins and fiat transferred to bitcoins, will be paid to ActiveMining shareholders proportionally, when all manufacturing, maintenance, labor costs, R&D, and miscellaneous expenses are deducted. The first BTC0.0025/share dividends will only be paid to the first 10,000,000 AM shares sold, providing investors a priority in getting back 100% return of their investment.
Our chips
Generation 1: Fast-Hash. 28nm. Each chip's rated frequency is 800 MHz at 1.15V. It translates to 16,000 MH/s because it does 20 hashes per cycle. Chip requires proper handling of heat and power supply.
Our current hardware assets
- 6 Avalon miners, running on BTC Guild under "Team AMC" for around 430 GH/s.
- Order of Avalon chips from steamboat's batch #1, for 68 Klondike-16 boards, rated at 68*16*282 = 307 GH/s
- 20,000 Avalon chips (end of May and beginging of June orders), for a combined hashrate of 20,000*282 = 5,640 GH/s
In total, around 6,377 GH/s[/b].
Version 4 7/5/13
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Introduction
ActiveMining (AM) is a virtual identity representing all the profits of the Active Mining Corporation and is totally owned by it. The Active Mining Corporation's business includes cryptocoin mining and sales of self-built ASIC devices through its wholly owned subsidiary Virtual Mining Corporation (VMC).
Currently, it is expected for interested investors to hold 10,000,000 AM shares (40% of the profits), while Active Mining Corporation owner(s) shall hold 15,000,000 AM shares (60% of the profits), for a total of 25,000,000 AM virtual shares that represent 100% of the global profits of the Active Mining Corporation.
Version 3 7/5/13
Just to make sure it is 100% clear. Since the VMC name is still being tossed into the offering is this how the structure looks? AMC |-------^--------| AM VMC **ACTIVE MINING REPRESENTS A VIRTUAL ID SO THE 40% OF THE SHARES HAVE A NAME & VMC REPRESENTS THE OWNER(S) MANAGEMENT 40% 60% 10M 15M I just want to make sure for myself and for the rest of the community. Thanks. Everyone will own AM shares that represent the profits of everything as a whole. VMC is just something that Active Mining Corporation owns 100%, and you as a shareholder will own a part of the profits of Active Mining Corporation with everything included. Just by having the name VMC in there is throwing me off a bit. I really want to forget about VMC. This is is why we should just refer to the company as one name. I am sure i am not the only one that is annoyed and frustrated by this since we first raised the issue. All these entities and names has made things complicated. So just to re-cap. AMC will have 25m shares and out of those shares 10m will be held by investors (AM shares) and 15m will be held by management. Where does VMC come into play? Where is VMC in this whole mess? We should only be referring to one company which is AMC and ActiveMining which is the called that just purely for to label 40% of AMC. Am i on point here? Once again can someone clarify where VMC is in this structure? Active Mining Corporation (Belize) owns everything and receives all the profits, 100% of which are then paid to the 10 million shares held by Investors until a total of .0025 BTC in dividends are paid to Investors. |
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============================================================================================================================
VMC/AMC Merger
This is a Pre-Merger VMC Offering.
(This Is For Community Review Only)
The Final Offering May Be DIFFERENT
(This Document Is For Community Review Only And May Contain Errors)
Version 3 7/5/13
============================================================================================================================
Introduction
ActiveMining (AM) is a virtual identity representing all the profits of the Active Mining Corporation and is totally owned by it. The Active Mining Corporation's business includes cryptocoin mining and sales of self-built ASIC devices through its wholly owned subsidiary Virtual Mining Corporation (VMC).
Currently, it is expected for interested investors to hold 10,000,000 AM shares (40% of the profits), while Active Mining Corporation owner(s) shall hold 15,000,000 AM shares (60% of the profits), for a total of 25,000,000 AM virtual shares that represent 100% of the global profits of the Active Mining Corporation.
The first 10,000,000 ActiveMining shares bought by interested investors have the privilege of getting all profits until BTC0.0025/share is paid, starting from the day when dividends begin to be paid.
The issuing of more AM shares will be allowed in the future, provided there is strong economic justification, mainly on the basis of covering emergent capital needs. Existing shareholders also get the first choice for buying new shares before they are sold on the open market. The volume of new shares shall be kept at a minimum as much as possible and the pricing of them should be such that the total value of all Active Mining Corporation's assets (tangible and intangible) per AM share does not diminish, protecting shareholders as much as possible from future dilution of value.
How to buy shares
AM shares will be sold on BitFunder and BTCT.CO and any other exchange, following asset approval. Existing Active Mining Cooperative (AMC) shareholders will be entitled to trade their shares for ActiveMining shares, on a 1:1 basis.
Dividend payment
The global Active Mining Corporation's income, including mining income, hardware sales via bitcoins, other cryptocoins and fiat transferred to bitcoins, will be paid to ActiveMining shareholders proportionally, when all manufacturing, maintenance, labor costs, R&D, and miscellaneous expenses are deducted. The first BTC0.0025/share dividends will only be paid to the first 10,000,000 AM shares sold, providing investors a priority in getting back 100% return of their investment.
Our chips
Generation 1: Fast-Hash. 28nm. Each chip's rated frequency is 800 MHz at 1.15V. It translates to 16,000 MH/s because it does 20 hashes per cycle. Chip requires proper handling of heat and power supply.
Our current hardware assets
- 6 Avalon miners, running on BTC Guild under "Team AMC" for around 430 GH/s.
- Order of Avalon chips from steamboat's batch #1, for 68 Klondike-16 boards, rated at 68*16*282 = 307 GH/s
- 20,000 Avalon chips (end of May and beginging of June orders), for a combined hashrate of 20,000*282 = 5,640 GH/s
In total, around 6,377 GH/s[/b].
Version 3 7/5/13
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(This Is For Community Review Only)
The Final Offering May Be DIFFERENT
(This Document Is For Community Review Only And May Contain Errors)
Version 2 7/5/13
============================================================================================================================
Introduction
ActiveMining (AM) is a virtual identity representing all the profits of the Active Mining Corporation and is totally owned by it. The Active Mining Corporation's business includes cryptocoin mining and sales of self-built ASIC devices through its wholly owned subsidiary Virtual Mining Corporation (VMC). The Active Mining Corporation's business includes cryptocoin mining and sales of self-built ASIC devices through its wholly owned subsidiary Virtual Mining Corporation (VMC).
Currently, it is expected for interested investors to hold 10,000,000 AM shares (40% of the profits), while Active Mining Corporation owner(s) shall hold 15,000,000 AM shares (60% of the profits), for a total of 25,000,000 AM virtual shares that represent 100% of the global profits of the Active Mining Corporation.
The first 10,000,000 ActiveMining shares bought by interested investors have the privilege of getting all profits until BTC0.0025/share is paid, starting from the day when dividends begin to be paid.
The issuing of more AM shares will be allowed in the future, provided there is strong economic justification, mainly on the basis of covering emergent capital needs. Existing shareholders also get the first choice for buying new shares before they are sold on the open market. The volume of new shares shall be kept at a minimum as much as possible and the pricing of them should be such that the total value of all Active Mining Corporation's assets (tangible and intangible) per AM share does not diminish, protecting shareholders as much as possible from future dilution of value.
How to buy shares
AM shares will be sold on BitFunder and BTCT.CO and any other exchange, following asset approval. Existing Active Mining Cooperative (AMC) shareholders will be entitled to trade their shares for ActiveMining shares, on a 1:1 basis.
Dividend payment
The global Active Mining Corporation's income, including mining income, hardware sales via bitcoins, other cryptocoins and fiat transferred to bitcoins, will be paid to ActiveMining shareholders proportionally, when all manufacturing, maintenance, labor costs, R&D, and miscellaneous expenses are deducted. The first BTC0.0025/share dividends will only be paid to the first 10,000,000 AM shares sold, providing investors a priority in getting back 100% return of their investment.
Our chips
Generation 1: Fast-Hash. 28nm. Each chip's rated frequency is 800 MHz at 1.15V. It translates to 16,000 MH/s because it does 20 hashes per cycle. Chip requires proper handling of heat and power supply.
Our current hardware assets
- 6 Avalon miners, running on BTC Guild under "Team AMC" for around 430 GH/s.
- Order of Avalon chips from steamboat's batch #1, for 68 Klondike-16 boards, rated at 68*16*282 = 307 GH/s
- 20,000 Avalon chips (end of May and beginging of June orders), for a combined hashrate of 20,000*282 = 5,640 GH/s
In total, around 6,377 GH/s[/b].
Version 2 7/5/13
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It should be not called Active Mining (AM) as it is difficult to differentiate from ASIC Miner (AM)
Well maybe that would not be so bad. |
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VMC/AMC Merger
This is a Pre-Merger VMC Offering.
(This Is For Community Review Only)
The Final Offering May Be DIFFERENT
(This Document Is For Community Review Only And May Contain Errors)
========================================================================================================================================================================================
Introduction
ActiveMining (AM) is a virtual identity totally held by the owner(s) of the Active Mining Corporation. The Active Mining Corporation's business includes cryptocoin mining and sales of self-built ASIC devices through its wholly owned subsidiary Virtual Mining Corporation (VMC). Currently, it is expected for interested investors to hold 10,000,000 AM shares (40%), while Active Mining Corporation owner(s) shall hold 15,000,000 AM shares (60%), for a total of 25,000,000 AM virtual Shares.
The issuing of more AM shares will be allowed in the future, provided there is strong economic justification, mainly on the basis of covering emergent capital needs. Existing shareholders also get the first choice for buying new shares before they are sold on the open market. The volume of new shares shall be kept at a minimum as much as possible and the pricing of them should be such that the total value of all AM assets (tangible and intangible) per share does not diminish, protecting shareholders as much as possible from future dilution of value.
How to buy shares
AM shares will be sold on BitFunder and BTCT.CO, following asset approval. Existing Active Mining Cooperative (AMC) shareholders will be entitled to trade their shares for AM shares, on a 1:1 basis.
Dividend payment
The income, including mining income, sales via bitcoins or other cryptocoins and fiat income transferred to bitcoins, will be paid to AM shareholders proportionally, when all manufacturing, maintenance, labor costs, R&D, and miscellaneous expenses are deducted.
Our chips
Our chips
Generation 1: Fast-Hash. 28nm. Each chip's rated frequency is 800 MHz at 1.15V. It translates to 16,000 MH/s because it does 20 hashs per cycle. Chip requires proper handling of heat and power supply.
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Hi Ken, could you please clear up these two things up from your community consultation document-
VMC will provide a method for shareholders to vote.
then a few lines later- VMC shares offer no voting rights. Shares of VMC on the exchange do not represent real world shares of the
company. The shares are solely a distribution mechanism for rights to profits.
And-VMC will be run by a 7 member board of directors, the board of directors will be elected within three months
of the initial IPO of VMC.
Does this mean you are going to offer a selection of candidates (say 10) and shareholders will vote and select 7 of these 10 to become board members? Thanks, Stuart There will nomination's. |
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Thank you for clearing up the dividend issue.
Would just like to say that I am an investor in AMC and have been a long time lurker on the board. I am happy that the slander being posted over the weekend has gone and we can now look forward to helping grow the project.
All the best.
I have been a lurker from 2009 until March 2013, registered in 2010 and did 2 post, so I know where you are coming from. Well, things are starting to come around, we are doing exactly what we said we would and we will continue to do that. After a while it gets harder and harder for the slanders to come up with anything. |
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Yep, thanks for the explaination, this is most certainly the reason.
btct : 2013-07-04 00:47 ฿ 2.78000000 511867 0.00000543 COMPLETE
Only the 511867 sold shares got their divs.
Yep, he must have thought it would be ฿2.78/2,000,000 = 0.00000139, but it turned out to be ฿2.78/511,867 = 0.00000543. Maybe Ken can issue a special ฿0.00000404 dividend on BF to cover this? Thoughts? Yes, Ken should definitely cover us for this. This was one of the issues that were addressed. So the past 5 dividend payouts from BitFunder has been wrong. No, the BF dividends are right. So I am to receive less just because I hold my shares on Bitfunder? No, It was a mistake, and BTC-TC shares got overpaid. This will be corrected in the future, however we are not taking back the dividends that where overpaid to BTC-TC shareholders. |
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Should AMC provide VMC with the NRE then AMC will receive at manufacturers cost the first 100 Fast-Hash-One fully loaded machines. The availablity date has been moved up to the end of October, due to the fact that using eASIC's Low Volume Production these chips can be available in about 12 weeks. These machines are rated at 24.576 TH/s maximum, so this would be a total of 2,457.6 TH/s. Now to get all of these machines AMC would need considerable resources to pay for these. However, this is the maximum number and AMC could purchase less than the maximum depending on their available funds. AMC will also receive 70% of the profit from bulk chips sales. eASIC Fast Turn Around ASIC: http://www.easic.com/high-speed-transceivers-low-cost-power-fpga-nre-asic-45nm-easic-nextreme-2/easic-nextreme-2-fast-turnaround-asics-manufacturing/ |
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I read the proposed offer for VMC and I believe it says VMC may buy AMC shares on the open market. I take it this will happen after the merger period if VMC views AMC as undervalued at a current market price?
Yes, that option is available to VMC, however I don't see VMC purchasing a large number of shares, as most of VMC's effort will be going into selling machines. While most of AMC's effort will be going into building its mining farm. The main reason for the swap is so that enough shares of AMC will be sold to allow VMC to pay the NRE. Of course AMC will get the NRE paid back. |
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Ken - I believe this operation will be a success and I've bought a lot of 2-3 month call options to AMC shares. I'd appreciate it if you take guys like me into consideration when setting the expiration date for the AMC to VMC share swap deadline.
We need to make sure there is a way to make Surprise (and any others in this position) whole. The first Google hit I found for what happens to an option following a stock split, is here: http://www.investopedia.com/ask/answers/03/092103.aspThe answer might help us figure out a solution. This is really not a stock split, it is a swap, 1 share of AMC for 1 share of VMC when approved for trading. The option owner are placing there bets and it up to them to guess right on the timing. As an option trader myself I understand their concerns. I made the options trades before any of the merger announcements on the basis of the existing AMC description on both exchanges and previous statements from Ken on this forum. I'm concerned in 2-3 months there won't be anyone to buy my AMC shares or any way to exchange them for VMC shares. I hope I'm not going to get punished for taking Ken at his word. I don't think that is going to happen, AMC will continue to exist for a long time to come. Even if the 10M shares where all swapped for VMC shares, AMC still has more to offer and will continue to grow. The only difference will be that some of the revenue from AMC will flow into VMC. I think it is a win for AMC and a win for VMC. |
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Ken - I believe this operation will be a success and I've bought a lot of 2-3 month call options to AMC shares. I'd appreciate it if you take guys like me into consideration when setting the expiration date for the AMC to VMC share swap deadline.
We need to make sure there is a way to make Surprise (and any others in this position) whole. The first Google hit I found for what happens to an option following a stock split, is here: http://www.investopedia.com/ask/answers/03/092103.aspThe answer might help us figure out a solution. This is really not a stock split, it is a swap, 1 share of AMC for 1 share of VMC when approved for trading. The option owner are placing there bets and it up to them to guess right on the timing. As an option trader myself I understand their concerns. |
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I really don't know how it will play out, but shareholders which decide to not swap will continue to receive their dividends for the foreseeable future. I think there wii be a market for the shares
How will AMC shares still receive dividends if mining dividends will be paid to VMC shares? Won't the Avalon's and the 20k chips be used to mine for VMC shareholders? I believe that VMC will be buying back or absorbing the majority of AMC's shares, AMC will still mine and payout to their shareholders. VMC will be a majority shareholder of AMC and pass on the dividend to the VMC shareholders. (Dont know if this is the case, but thats how I interpret it) I interpret that as AMC will purely mine and give dividends for mining. VMC will receive dividends for both mining and sales. AMC and VMC will share dividends from mining? and VMC will have the added dividends from sales? Yes, that is the way it would work. The 10 Million shares represent a 10% division of profits in AMC. If the 10 Million shares are swapped for VMC shares the 10 Million shares would represent a 40% true ownership in VMC. Also VMC will receive income from mining and from sales. |
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Yep, thanks for the explaination, this is most certainly the reason.
btct : 2013-07-04 00:47 ฿ 2.78000000 511867 0.00000543 COMPLETE
Only the 511867 sold shares got their divs.
Yep, he must have thought it would be ฿2.78/2,000,000 = 0.00000139, but it turned out to be ฿2.78/511,867 = 0.00000543. Maybe Ken can issue a special ฿0.00000404 dividend on BF to cover this? Thoughts? Yes, Ken should definitely cover us for this. This was one of the issues that were addressed. So the past 5 dividend payouts from BitFunder has been wrong. No, the BF dividends are right. |
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this issue aside, BTCT always seems to be the better choice over Bitfunder. Is there a way to transfer shares without selling and re-buying?
Yes, check the BTC-TC details, however this is not a fast process. Right now it may take 2-3 weeks to get the shares transferred, as we are working on a number of other things. |
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Yep, thanks for the explaination, this is most certainly the reason.
btct : 2013-07-04 00:47 ฿ 2.78000000 511867 0.00000543 COMPLETE
Only the 511867 sold shares got their divs.
Yep, he must have thought it would be ฿2.78/2,000,000 = 0.00000139, but it turned out to be ฿2.78/511,867 = 0.00000543. Maybe Ken can issue a special ฿0.00000404 dividend on BF to cover this? Thoughts? Yes, Ken should definitely cover us for this. This was one of the issues that were addressed. So the past 5 dividend payouts from BitFunder has been wrong. No, they were correct (the past 5 dividends on BF). Just this time, the dividend on btct.co is wrong. The dividends on bitfunder was the correct one, next week we will issue the correct dividend on BTC-TC. |
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My payments per dividend was much higher on amc-pt than on amc on bitfunder? Any reason for this?
True indeed. 0.00000543 per share on BTCT 0.00000139 per share on BitFunder How did that happen? I missed out on a LOT of BTC lol I guess this explains why the AMC-PT (pass-through) is going for higher than the actual AMC listing on Bitfunder  I think what happen is that the BTC-TC dividends work different than bitfunder. On bitfunder the dividends are divided between all issues shares which includes all shares issued. BTC-TC must have spread the dividend to only the shares that have sold. Next week the dividend will be correct on BTC-TC to account for this. |
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Everything is right. The only thing is that AMC will continue to exist for those that do do want to swap there shares. What eventually happens to the AMC entity? Eventually there will be no more AMC and the security will be delisted? I really don't know how it will play out, but shareholders which decide to not swap will continue to receive their dividends for the foreseeable future. I think there wii be a market for the shares |
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Everything is right. The only thing is that AMC will continue to exist for those that do do want to swap there shares. |
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