Havelock Cavirtex is about to collapse

[a343b343]

Time to finally say something with my lurker account:


I think Havelock CaVirtex (VTX) holders are about to see price collapse.  Why?

Exit price is fixed at $30 a share. 

User freedomno1 linked to a copy of the original prospectus:
https://bitcointalk.org/index.php?topic=218435.msg3958831#msg3958831
From the prospectus on page 10:
" ⁵ The share price will be fixed at $30 CAD per share (due to our Canadian dollar valuation) but priced in BTC. At the time of this writing [March 18, 2013] using an exchange rate of $46.875 CAD/BTC one share will cost 0.64 BTC. The BTC price will change on Havelock every hour as the BTC/CAD exchange rate changes."

Havelock VTX will be converted into physical non-tradeable certificates,

The value of the securities which these will be converted into is fixed in the articles of incorporation at $30 CAD, and they are non-tradeable.  From Havelock:  "to enable holders at the Effective Time to receive physical share certificates... The shares represented by the share certificates are not, and will not be for the foreseeable future, listed on a stock exchange and are subject to transfer restrictions under applicable securities laws."
https://www.havelockinvestments.com/fund.php?symbol=VTX

Current price of VTX at Havelock?
BTC 0.14 (~$118.48)

"Adjusted" exit price?
BTC 0.032ish is 30 Canadian dollars in BTC per share...

An 80% loss instantly vacuuming up all the unprotected shareholder value?
Priceless

[Faince1985]

If the values you are describing now are correct it will most likely collapse when trading is resumed. Also the idea of paper and registered might not be good for each share value but it will most likely release the company from some possible legal issues. Though doing this to investors seems unethical.