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Author Topic: [CRYPTOSTOCKS] Vircurex (VCX) - Request for Vote - Dividend Payment Proposal  (Read 945 times)
Kumala
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April 03, 2013, 10:09:53 AM
 #1

What do we want you to vote for?
Change current process of paying out complete revenue as dividend to paying out 70% of the net profit as dividends and retain 30% of the net profits to increase the NAV until NAV reaches the face value of 0.25.

Why are we requesting for this vote?
When VCX was listed, we assumed that the platform will only reach a break even in 3 years. Due to the unexpected large increase in trading activities in the past 6 weeks, we have been able to achieve the breakeven already in the first month. This very positive business development requires us to relook into the way the profits are being used.

What is the impact if the vote pases?
70% of the net profits will be paid out as dividends, 30% will be withheld to increase the NAV of the company. These funds will be held in BTC and LTC. Retaining 30% of the net profits will help to retain cash for future unplanned acquisitions, marketing activities, etc.

What is he impact if the vote fails?
The NAV of the shares will gradually drop to 0 BTC in 3 years time, as the operational costs are being paid for out of the companies capital (as per the listing contract).

Our recommendatio
Vote with "yes". This is in the interest of the shareholders, we are improving the value of the shares.

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April 07, 2013, 12:23:02 PM
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What do we want you to vote for?
Change current process of paying out complete revenue as dividend to paying out 70% of the net profit as dividends and retain 30% of the net profits to increase the NAV until NAV reaches the face value of 0.25.

Why are we requesting for this vote?
When VCX was listed, we assumed that the platform will only reach a break even in 3 years. Due to the unexpected large increase in trading activities in the past 6 weeks, we have been able to achieve the breakeven already in the first month. This very positive business development requires us to relook into the way the profits are being used.

What is the impact if the vote pases?
70% of the net profits will be paid out as dividends, 30% will be withheld to increase the NAV of the company. These funds will be held in BTC and LTC. Retaining 30% of the net profits will help to retain cash for future unplanned acquisitions, marketing activities, etc.

What is he impact if the vote fails?
The NAV of the shares will gradually drop to 0 BTC in 3 years time, as the operational costs are being paid for out of the companies capital (as per the listing contract).

Our recommendatio
Vote with "yes". This is in the interest of the shareholders, we are improving the value of the shares.

I don't understand what sense this makes. You made a deal with your investors whereby you promised a percent (100%) of future profits in exchange for capital, based on some market assumptions you yourself proposed. Coupla months down the road the market situation has moved muchly in favor of the investors, and so you wish to change the deal, so they only receive 70% of future profits, you keeping the rest.

If this measure passes either a. you had no investors to begin with, the entire thing being a sham (the more likely, in my judgement) or b. your investors are mentally retarded beyond the minimum required for functioning socially. There's of course also the possibility of c. you lying about it having passed, when it didn't, but I guess we'll be hearing about it if that's the case.

The offensive part is your misstatement of fact. The NAV would not reach zero, seeing how the shares still reflect ownership in your business (which you did not retain, as per the original contract, but gave away in exchange for hefty - and again self-originated - licensing fees and whatnot). The NAV would be whatever 100% of a suddenly lucrative - if poorly managed - exchange would indicate.

Even if you were a credible entity (which you are not, especially with such shenanigans going) and could be trusted to use the accumulations for worthy reasons rather than the acquisition of beer, retaining capital is just in and of itself a risky proposition in BTC. What happens if you're hacked? Distributions already made can't be hacked. Seeing how vircurex has been having issues staying online recently...heh.

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April 07, 2013, 12:52:28 PM
 #3

So, um what happens if (as has just happened) LTC rises sharply vs BTC and suddenly the NAV of these reserves exceeds the "face value" of 0.25 BTC per share?  Do you then dividend it out?

What I can't figure out is how - if you didn't need to hold back 30% of revenue when you were making a loss - you suddenly need to do so when you're making a profit.  I thought YOU pay the various expenses - regardless of what profit/loss was.  And as you hold most of the shares you gain more from dividends now anyway.

Holding the funds inactive does nothing.  Using it to pay for costs that were YOUR responsibility is near enough stealing from investors.

Have to say I gave up on taking this IPO seriously when you set a minimum of shares that had to be sold for the IPO to proceed - then, when that wasn't reached, edited the contract mid-IPO to reduce the target!  Are ALL assets on Cryto::Stocks allowed to just change IPO terms like that - or just yours?  I actually agree that, in theory, the change made some sense - as BTC had risen vs USD.  But if you want to price shares/set limits based on USD rather than BTC then you do so IN THE CONTRACT BEFORE SELLING ANY SHARES.

The preferred order for things to happen is:
1.  Decide what you're going to do.
2.  Sell shares.
3.  Do what you said you'd do.

So far you seem to have problems with #1, had to change the IPO mid-launch to sort of achieve #2 and now appear to have no intention of doing #3 at all.
Kumala
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April 07, 2013, 01:52:56 PM
 #4

This is a vote, I (the 70% of the shares) am not entitled to vote in this case. I have clearly outlined that only the dividend entitled shares (the 30% that were sold) are entitled to vote, hence the people who receive the dividends will get to say what they think about this deal. They are the ones affected by this proposal. Its a proposal only at this point in time unless they majority agree.

BTW, if your initial business plan says we will make around 10+ BTC profit a month in the near future and then whooha, we make 100+ profit with an outlook of even more then the conditions have changed dramatically thus I believe shareholders should be able to raise their voice on how they want to deal with the new situation.

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