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Author Topic: Re: {Bakewell} Get an equitable stake in a transparent & growing mining company  (Read 303 times)
ianbakewell
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September 29, 2012, 04:55:12 PM
Last edit: September 29, 2012, 07:33:05 PM by ianbakewell
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Those of you following along will remember that not to long ago CPA had started talking about potential problems.
I have had my doubts about their ability to honour our agreements from that time on,
CPA has openly admitted to being in a liquidity crunch, and other community members have pointed out the held assets will not cover current liabilities.

[CLOSED] [CPA] [BMF] [NYAN] Liquidity Loan Request
[GLBSE] CPA - No Dividends for the month of August, 2012

In the last little bit, much drama has surrounded Usagi and CPA, cumulating in a scammers accusations thread:

Usagi: falsifying NAVs, manipulating share prices and misleading investors.

I am not the type of person to walk away from a commitment, however at this time I think it would be best to stop payment on the CPA account until this is resolved.

I have raised a motion this afternoon asking the shareholders to approve the closure of the Shareholder Protection Fund held in trust with CPA.

A few days ago I reached out to Usagi about options on closing the account.
I will add that conversation bellow. Mods are welcome to confirm the messages are in my pms and appear here unedited (personal conversation removed, BAKEWELL stuff posted):

Hello Usagi,

In the time between founding BAKEWELL and creating the shareholder insurance fund with you, and now, the plan for BAKEWELL has dramatically changed.
BAKEWELL is a much smaller company than I initially thought I would launch with. We will continue to grow, but on a slow roll out basis.
At this time, the dividends from BAKEWELL will not cover the funds fee. As such I am not able to continue with it at this time.
I will be utilizing the small dividend I receive to aggressively grow BAKEWELL until the first half of the ipo is sold out.
I apologize for any inconvenience this causes you.

The fund currently has 4 BTC in it.
I would like to work out a refund of this from you, less a small management fee.
I would then like to restart this with a larger initial contribution and a payment plan based on dividend income once half of my ipo is cleared out.

Thank you,

Ian


Hi. Working out a refund is not possible because this is an agreement designed to protect your shareholders in case of a default on your end. These funds are held in trust on behalf of your shareholders. Second point (the obvious one) but bears bringing up, there is a non-cancellation clause.

The first problem here, on my end, is that whether or not you are experiencing financial difficulties, this is precisely what a scammer would try to do before he defaulted on his contract. He would try to get money such as this returned to him. That is precisely the reason why I cannot return it; this is a shareholder protection agreement.

The second problem is on your end. If you fail to pay your premium your contract will be voided and I must announce this publicly since your shareholders would no longer be covered.

If you feel the financial difficulties you are experiencing are temporary, I will agree to postponing payments for up to four weeks.

Yes, I know I could "just take back" what we signed and it would be easy for me to just absolve you of any liability and return the money. However if I did that I would not be doing my job. If your company is unable to meet the obligations in it's contract as a direct result of having to pay 1 btc per week, you have a problem.

Anyways, if you really really feel sour about this I suggest we discuss it openly with your shareholders. The best I can offer you is to have Nefario pay the money as a special dividend, as you wouldn't have met the trust concerns of no default over a 1 year period.

Good luck!

Usagi,

BAKEWELL is fine and sitting cash heavy right now. 110btc and $4k CAN. I will be purchasing the rigs this week. I can expect around 650mhash per 7970, looking at 4-6 of these cards to start, I can estimate my dividends. We are not big enough yet that my portion of earnings would cover the fund contribution.
We are equitable, with a small return and utilizing the 7970's as a stop gap until asic tech is available for delivery.

I am 737 shares into my second funding round. I will need to sell another 1763 shares before my contract allows for another equipment purchase anyhow.

I am aware of the contract clauses, particularly A4 and section D. A4 allowing you to accelerate your portion, and section D pertaining to the expiry date & offering repayment to myself or as a dividend to shareholders.

I understand this is a "scammer" move, asking for the refund. But in all reality, the 4btc against the 500+ I have raised to date, is les than 1%.
In the event I defaulted right now, I doubt many are going to care about their share of the 4btc.

If we are not able to move forward on this privately (and I understand the commitments and reputation you must maintain) then I would ask that we begin working on this option: "The best I can offer you is to have Nefario pay the money as a special dividend, as you wouldn't have met the trust concerns of no default over a 1 year period."

Thank you,
Ian

I changed my mind and decided to wait a few days more, see how things would play out over the next little bit. Maybe Usagi is all good and trolls are trolls.
I send them this:

Usagi,

Another idea:
Would you be willing to move the minimum contribution down from 1btc to 50% of my dividends (as pledged here)
I would be happy to continue on with CPA as we grow.

Ian

Ok, I have confirmed that's ok here: https://bitcointalk.org/index.php?topic=104489.msg1223276#msg1223276

Although if you do want the money back that's fine, I just want to see that your shareholders agree (motion).

As you may guess I've been busy as can be recently and I haven't had a chance to look at the new securities in greater depth, but glancing thru the thread I'm happy to see your shareholders are excited ^^ That's a good sign.

Ok so to recap, moving forward, we're lowering the minimum payment to 0.1/week (or 50% of div or whatever) -- the idea I think should be to show investors the fund is increasing every week by something. If it's a small amount thats probably fine, since you don't have your ASIC units yet.

*bold emphasis mine*
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