Official CaVirtex.com Thread

[Peter R]

I noticed that cavirtex is no longer allowing wire transfers (https://www.cavirtex.com/news).  Does anybody know why?

[freedomno1]

On one hand I am seriously disappointed in cavirtex on the other I have a whole set of questions that may change my bias.

First off they delayed the dividend then canceled all effective shareholding when January is about to arrive
http://blog.cavirtex.com/announcement-ceo-joseph-david
They need to pay the dividend they promised back in October but instead delist and give out shareholder certificates.
To me that is a snark on the contract and a snide way to get out of the obligation to a large extent.
Additionally they do not post about it on their blog but send it out in an e-mail.

However they do offer direct shares so if they get listed on a Venture Exchange it might be acceptable but that is not planned at this time.
The contract was based on the existence of the company and measuring in Fiat is a bit of an inconvenience but not against the contract.

What I see however is that Cavirtex took the IPO money said thank you we will pay it back in fiat as the share price drops due to Bitcoins rapid rise then delayed the dividends for as long as possible before closing their havelock asset.

This coincides with the announcement of the closure of the stock exchange for shareholders without even putting a penny back into the redistributed dividends.

In addition any shareholders who do hold direct shares will need to pay the burden out of their own pockets to register their shares.

Optional: For a $150 administration fee VirtEx will file your name and the number of shares you own with Alberta Registries. This is subject to the number of shareholders and requirements by Alberta Securities Law. Corporate structure and the administration fee may change to list new shareholders.

EDIT IN: From Havelock Page All current Unit Holders have an opportunity to become Direct Shareholders at No FEE!

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 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.

Share price: $30 CAD = 0.64 BTC

Assuming that still holds I presuppose that if Cavirtex were to launch on a Venture exchange shares will all be devalued to $30 CAD dollars per share and not redistributed as per the contract.

Quite a large fiat loss for those who held long especially if they had just held the bitcoin, either way would appreicate some clarifications on
1. The Administration Fee
2. The Share Price of Kept Share Certificates
3. The Dividend Structure and Planned Payment of Dividends in January
4. The Progress of the Shorting Exchange and the Virtex Short Fund that was supposed to be listed on Havelock but now will be I assume delisted.

Leaving it here for public reading rather than just sending off an e-mail with questions to allow people to formulate their own opinions and to acquire an official reply to these presented points.

[acorcos]

Lets keep it simple (round numbers) shall we:

VirtEx took 4000 btc from an IPO in March ($150K) promising a dividend that they never delivered. Now, only 9 months later, their market reap is worth $3.6M (quite the gestation) and they are exiting the exchange. No dividend, no buyback, simply a promise to exchange currently held shares for "something else".

And, as freedom1 accurately points out, without fair warning either; trading shut down simultaneously and will only reopen Wed for a final 2 weeks. Very shrewd. I'm thinking they will let it sink in, re-open and buy back as many shares as they can at the fire sale. Those left holding will get some diluted-down, $-denominated, un-exchangeable "certificate" in return.

My guess, Joe found himself some private investors with clever lawyers. Or he's just a creep.

Either way, Havelock as an exchange, complicit in this crime, is not long for this world if they can't protect their participants any better than this.

[12gaFacelift]

I will explain to you something, Cavirtex give information about their user. My friend who hide nothing for tax or other goverment thing to pay, find his acount blocked due to a "social agent(person without legal authority)" trying to enter in the account, agent who do not have legal right to do so nor a court order. Information of the account given by cavirtex without court order. They do not give only the information of "yes the person has a account here but if you want to know more please send your court order to: " nothing they only give to the person the information and that in ALL Canada its illegal.

[bitcoin carpenter]

Not sure I understood that last bit

[Bobsurplus]

Not sure I understood that last bit

He's French.

I think he's saying that one of his friends had his account info handed over to some sort of government agency without a warrant and maybe even had his cavirtex account frozen or something to that effect.

[12gaFacelift]

I'm French so my English is very limited, what I know is that Cavirtex they make many illegal thing as Canadian laws and given the information on the accounts without court order of a person is also illegal. The agent in question want to have the information in the account, but why? while all the deposits were made ​​in the bank account of my friend and all the information has been given to official body for taxes, social agent has no right to request account information in Cavirtex.

[bitcoin carpenter]

Anybody have any information about what cavirtex is up too?
Why they are delisting?

Are they being bought?
Are they restructuring?

WTF is Goin on

[freedomno1]

I'm French so my English is very limited, what I know is that Cavirtex they make many illegal thing as Canadian laws and given the information on the accounts without court order of a person is also illegal. The agent in question want to have the information in the account, but why? while all the deposits were made ​​in the bank account of my friend and all the information has been given to official body for taxes, social agent has no right to request account information in Cavirtex.

I think it is not a problem if you say the same thing in English and French that way someone who knows a bit of French can read that as well.
Bilingualism

Anybody have any information about what cavirtex is up too?
Why they are delisting?

Are they being bought?
Are they restructuring?

WTF is Goin on

Why they are delisting?

Some vague reason
"The decision to delist VTX from havelockinvestments.com was made after considering the company's current position and our future business objectives."

No clarification on the business objectives

Are they being bought

No to my knowledge but their have been some signs from them

One they changed the trading fees
Joseph said that they were not making enough capital to secure banking relationships and delayed the Dividend from October which is due in Q1 2014 unless they changed that too.

Two All account holders need to pay a transaction fee that withdrawal fee and inactivity fees on their accounts

Three They Delisted the stock from havelock before the dividend was due

Are they restructuring?

Signs point to a huge lack of capital by the way they are retaining as much assets as they can

That still doesn't make much sense though since they have a lot of verification going on

They are raking in cash from the Trading Fees they charge

And Have launched an affiliate program

They are trying to expand the merchant network throughout Canada through Interact Debit Cards and through merchant API's

If anything this company should be flush with a money right now
They got the full advantage of the IPO and the price increase in Fiat

They have a huge income stream incoming from all the users that still require verification.
Plus they rake in a significant amount of money from the trading fees they charge and their affiliate program

The only thing I can see is that they are delisting and giving non-voting shares to Virtex holders pocketing the future dividends and giving out any payments at their discretion.

By doing that they will have less people complaining when they don't pay dividends on the notes they have in holding, and rake in all the profits from the money of the shareholders without any due obligation to give them back the assets

Making it a loan that they have no obligation to pay back at Fair Market Value.

Or in other words Thanks for all the Fish

That said I am awaiting the answers to my previous set of questions so in all honesty clarification would be appreciated from them.

But WTF is going on is a legitimate question.

[Juzzers]

The only thing I can see is that they are delisting giving non-voting shares to Virtex holders and pocketing future dividends that they give out will be at their discretion.

By doing that they will have less people complaining when they don't pay dividends on the notes they have in holding, and rake in all the profits from the money of the shareholders without any due obligation to give them back the assets

If that's what they're intending to do, they're going to find an onslaught of bad publicity across every form of social media pointing out what a completely untrustworthy group of thieving scum they are.

So let's hope they come up with some answers real quick.

[acorcos]

Anybody have any information about what cavirtex is up too?
Why they are delisting?

Are they being bought?
Are they restructuring?

WTF is Goin on

Who knows. They are most certainly an attractive acquisition and my bet is they're either acquired or in bed with some fat VC investors that are calling the shots.

One thing is for sure. No Havelock investors are going to see a single satoshi from VirtEx. They're keeping it all.

[acorcos]

If that's what they're intending to do, they're going to find an onslaught of bad publicity across every form of social media pointing out what a completely untrustworthy group of thieving scum they are.

Look, VirtEx is a sound company with a good product. They've done a lot of things right and deserve a big buy out.

Save your scorn for Lightbox and Havelock. Do you thing NYSE or NASDAQ would allow a company to leave their exchange with a promise to trade stock for "tokens yet to be defined"? They've lost a ton of credibility here.

[Juzzers]

If that's what they're intending to do, they're going to find an onslaught of bad publicity across every form of social media pointing out what a completely untrustworthy group of thieving scum they are.

Look, VirtEx is a sound company with a good product. They've done a lot of things right and deserve a big buy out.

Save your scorn for Lightbox and Havelock. Do you thing NYSE or NASDAQ would allow a company to leave their exchange with a promise to trade stock for "tokens yet to be defined"? They've lost a ton of credibility here.

What have Lightbox or Havelock got to do with anything?

My scorn is for a company who stated in their prospectus "Once the IPO is sold out, these shares can be traded on HAVELOCK at user determined prices."

But instead, are planning to permanently delist, preventing trading of the shares, locking investor's bitcoins away except for what will presumably be a monumental crash during the brief reopening of Havelock whilst everyone scrambles to save whatever they can before their money is swallowed by Virtex.

Or - have I misunderstood?

[acorcos]

If that's what they're intending to do, they're going to find an onslaught of bad publicity across every form of social media pointing out what a completely untrustworthy group of thieving scum they are.

Look, VirtEx is a sound company with a good product. They've done a lot of things right and deserve a big buy out.

Save your scorn for Lightbox and Havelock. Do you thing NYSE or NASDAQ would allow a company to leave their exchange with a promise to trade stock for "tokens yet to be defined"? They've lost a ton of credibility here.

What have Lightbox or Havelock got to do with anything?

My scorn is for a company who stated in their prospectus "Once the IPO is sold out, these shares can be traded on HAVELOCK at user determined prices."

But instead, are planning to permanently delist, preventing trading of the shares, locking investor's bitcoins away except for what will presumably be a monumental crash during the brief reopening of Havelock whilst everyone scrambles to save whatever they can before their money is swallowed by Virtex.

Or - have I misunderstood?

I don't think you've misunderstood anything and I completely understand your anger with VirtEx. In fact, I share it.

My point is that Havelock should have some protections in place:

"We strive to achieve a very high level of both transparency and confidence, and will be thorougly vetting any applications. We will only accept the highest quality funds into our exchange."

If a company is allowed to abscond with the proceeds of an IPO so easily, you'd have to be nuts to forfeit any btc to any enterprise listed on their exchange.

[Juzzers]

If that's what they're intending to do, they're going to find an onslaught of bad publicity across every form of social media pointing out what a completely untrustworthy group of thieving scum they are.

Look, VirtEx is a sound company with a good product. They've done a lot of things right and deserve a big buy out.

Save your scorn for Lightbox and Havelock. Do you thing NYSE or NASDAQ would allow a company to leave their exchange with a promise to trade stock for "tokens yet to be defined"? They've lost a ton of credibility here.

What have Lightbox or Havelock got to do with anything?

My scorn is for a company who stated in their prospectus "Once the IPO is sold out, these shares can be traded on HAVELOCK at user determined prices."

But instead, are planning to permanently delist, preventing trading of the shares, locking investor's bitcoins away except for what will presumably be a monumental crash during the brief reopening of Havelock whilst everyone scrambles to save whatever they can before their money is swallowed by Virtex.

Or - have I misunderstood?

I don't think you've misunderstood anything and I completely understand your anger with VirtEx. In fact, I share it.

My point is that Havelock should have some protections in place:

"We strive to achieve a very high level of both transparency and confidence, and will be thorougly vetting any applications. We will only accept the highest quality funds into our exchange."

If a company is allowed to abscond with the proceeds of an IPO so easily, you'd have to be nuts to forfeit any btc to any enterprise listed on their exchange.

To play devil's advocate, you can thoroughly vet and check for high standards but you can't stop the fund doing what it wants as long as it's not breaking the law.

I guess Havelock needs some kind of contractual arrangement which would allow them to take funds to court who acted against the interests of shareholders.

I think Virtex takes most of the blame here though. It strikes me as extremely lame that a bitcoin exchange would remove the ability of its investors to continue trading shares in bitcoin.

What are they saying that there's something wrong with bitcoin and they don't want people trading their shares in it? Really smart.

[faizaa123]

This CaVirtex ordeal has changed the way I play the security game in many ways.

1. I plan on liquidating my VTX stock .  I'm in the UK and don't plan on purchasing regulation certificates.  wtf is this about.
2. I am done with Havelock Exchange.  What a slap in the face to share holders and they do it so easily.
3. I am not doing any business at Canadian Virtex.  I used to trade there amongst other places.


I am done with their business.  This is shady and offensive to me.  Fortunatley I am only holding about 15 shares so it's not a bank breaker, but I paid over 4 BTC for those shares which are now very likely going to be useless. 

Joke of a company I once (4 days ago) had the utmost of respect for.

[acorcos]

This CaVirtex ordeal has changed the way I play the security game in many ways.

1. I plan on liquidating my VTX stock .  I'm in the UK and don't plan on purchasing regulation certificates.  wtf is this about.
2. I am done with Havelock Exchange.  What a slap in the face to share holders and they do it so easily.
3. I am not doing any business at Canadian Virtex.  I used to trade there amongst other places.


I am done with their business.  This is shady and offensive to me.  Fortunatley I am only holding about 15 shares so it's not a bank breaker, but I paid over 4 BTC for those shares which are now very likely going to be useless. 

Joke of a company I once (4 days ago) had the utmost of respect for.

Amen brother

[Juzzers]

If that's what they're intending to do, they're going to find an onslaught of bad publicity across every form of social media pointing out what a completely untrustworthy group of thieving scum they are.

Look, VirtEx is a sound company with a good product. They've done a lot of things right and deserve a big buy out.

Save your scorn for Lightbox and Havelock. Do you thing NYSE or NASDAQ would allow a company to leave their exchange with a promise to trade stock for "tokens yet to be defined"? They've lost a ton of credibility here.

They do not "deserve a big buy out" they deserve to be shut down.

What makes a company deserving who just knicks off with the money of the people who paid for it's development?

I think we need to start getting people together to see what legal action can be taken since they have clearly breached what they said in their prospectus.

[cavirtex]

Joseph David: "Firstly I would like to assure everyone that there is no mal-intent in this decision.  I will be posting additional details about this decision and answers to many questions on the Havelock site early next week and before trading resumes.  Please feel free to e-mail me your questions directly to joseph@cavirtex.com. I will not respond individually, instead I will group questions together and post the questions and answers on the Havelock page for VTX.  I will also have further details and clarification about dividends.  In the Bitcoin landscape please try to understand that things change and I am doing my best to adapt to the change. Once my update is posted all Havelock shareholders will receive the e-mail."

[freedomno1]

Joseph David: "Firstly I would like to assure everyone that there is no mal-intent in this decision.  I will be posting additional details about this decision and answers to many questions on the Havelock site early next week and before trading resumes.  Please feel free to e-mail me your questions directly to joseph@cavirtex.com. I will not respond individually, instead I will group questions together and post the questions and answers on the Havelock page for VTX.  I will also have further details and clarification about dividends.  In the Bitcoin landscape please try to understand that things change and I am doing my best to adapt to the change. Once my update is posted all Havelock shareholders will receive the e-mail."

In the interest of all shareholders I have posted a link to the IPO prospectus since it was removed from havelock so that anyone with questions can be properly directed and have all relevant information on hand when sending off an e-mail


https://www.havelockinvestments.com/reports.php
Used to be
https://www.havelockinvestments.com/reportdownload.php?id=7
Noticed it was removed from there so I am posting it for others to download
Here is the URL sorry it had to be df haven't uploaded in a while lol
http://depositfiles.com/files/gssebgfxi