[Smidge.Com] - A virtual, actively managed, multi-asset digital currency fund

[mrtchipr]

So now what about the invested money of the shareholders?
Are there any BTC left, or are them all gone?

Please tell me more exactly how much of my 10 invested BTC am I becoming back.
greetings stefan

Someone else please correct me if I'm wrong.
Assuming you bought 500 shares (125 shares @ 2.5btc), you multiply 500 by NAV value.

500 * 0.00261275 (NAV per share wk46) = 1.306375btc

That is how much your share is worth this week.

[Smidge]

So now what about the invested money of the shareholders?
Are there any BTC left, or are them all gone?

Please tell me more exactly how much of my 10 invested BTC am I becoming back.
greetings stefan

Someone else please correct me if I'm wrong.
Assuming you bought 500 shares (125 shares @ 2.5btc), you multiply 500 by NAV value.

500 * 0.00261275 (NAV per share wk46) = 1.306375btc

That is how much your share is worth this week.

Hi kandelawa and mrtchipr,

The buybacks follow the same process since Day 1, you have always been able to do this. Let's assume you own 500 shares. You multiply them with the current NAV (which is 0.00261275) and you get a current NAV from yesterday (= buyback price) of your holdings of BTC 1.306375, like mrtchipr described. You can choose to make the buyback between now and Dec 31st.

Edit: The current NAV will be calculated on a case by case basis to make realtime offers for share buybacks. What you see in the report is the weekly snapshot. This is to protect other shareholders if a buyback is done for a price too high/low and the fund NAV increases/decreases due to a position that changes its value and has to be sold too high/low on the market.

[Smidge]

Smidge, were the buybacks bought by you personally, or the fund?
The weekly balance sheet shows the outstanding shares relatively unchanged week to week.

Hi Vex,

There were no buybacks requested in the last weeks, hence the # of shares in the report did not change. You will see the changed number in next week's report, as always.

[Vexual]

Can you show me where buybacks are referenced in the contract?
Can you show accounting for these instances?
Did you, or the fund, buy back the shares?

[Smidge]

Hi Vex,

Can you show me where buybacks are referenced in the contract?

Share buybacks have been referenced under "Cash Reserve" in the contract, plus they have been offered since the start of the fund and discussed in this thread. Quite a few investors have been using this instrument.

Can you show accounting for these instances?

Of course. As soon as buybacks are conducted, they show up in the next weekly report.

Did you, or the fund, buy back the shares?

Of course the fund buys back the shares through liquidation of it's assets. I do not own the fund, the shareholders do. I just own shares in it, like everyone else.

[Vexual]

Hi Vex,

Can you show me where buybacks are referenced in the contract?

Share buybacks have been referenced under "Cash Reserve" in the contract, plus they have been offered since the start of the fund and discussed in this thread. Quite a few investors have been using this instrument.

Can you show accounting for these instances?

Of course. As soon as buybacks are conducted, they show up in the next weekly report.

Did you, or the fund, buy back the shares?

Of course the fund buys back the shares through liquidation of it's assets. I do not own the fund, the shareholders do. I just own shares in it, like everyone else.

You have highlighted one of the many obvious departures from the contract here.
Cash reserve and liquidating assets are not the same thing.
Or are you referring to the fund closure when you speak of liquidating assets here?


A structured and professional wind down?
This is hardly a well defined action plan and time line.
What assets are you writing off as worthless?
Will they be sold after the date of the fund closure if this is possible?


The contract bares little resemblance to anything you have provided, and I consider it to be voidable.

[bbxx]

Smidge.Com Letter to shareholders / Fund closure

Even though the performance of our venture did not in any way meet the expectations, I would like to thank you for this interesting and instructive journey

Smidge, i was bashing you from the start,  that you have no experience and you dont know how to use puts, options etc. You were stating that you have proffesional team and so much more bullshit.

Now you lost 400btc, 90% btc, and you say thank for interesting and instructive journey?
Wtf?

You should learn to play with stocks with your father money first.

This is pathetic. I am glad that my crusade holded some funds away from your bagholder fund.

[Smidge]

Hi Vex,

Cash reserve and liquidating assets are not the same thing.
Or are you referring to the fund closure when you speak of liquidating assets here?

The fund NAV is made up by all the assets held. Assets are being sold on the market to generate coins to buy back shares from investors for the current NAV per share. NAV per share times amount of shares equals the funds total NAV.

What assets are you writing off as worthless?
Will they be sold after the date of the fund closure if this is possible?

This is a good question. Currently there are some securities that are not being traded on any exchange, making it impossible to get a fair market price. We will be announcing the plan for these securities once the share buybacks have been conducted, as they belong to the shareholders.

[Vexual]

Thanks for the info smidge, it seems you are doing your best.

[ft73]

Because of these environmental changes in the last months, we have decided to close down the fund as of Dec 31st, 2013. As we never had an IPO and always operated in private mode, we currently have 17 private investors left, who have been informed via e-mail about the details of the wind down.

e-mail? I think i missed this.

[Smidge]

e-mail? I think i missed this.

Hi ft73,

You received an e-mail to the address you specified when signing up. I just sent you a PM with the details.

[Smidge]

Smidge.Com Letter to Shareholders / Buyback and close dates

Dear Shareholders,

Within two days after last week's announcement, we bought back more than two thirds of the outstanding shares. Thank you everyone for your quick responses.

Due to the buyout going along more quickly than we expected, we decided to move the closure date from Dec 31st to Dec 9th, to comply exactly with the 30 day timeframe posted in the "Fund closure" section of the business plan.

[Vexual]

Distribution to shareholders will be done according to a public, defined timeline and action plan.

[Vexual]

Your spreadsheet subtracts the current week management fee from NAV, are you using this calculation for your buybacks?

[alexius89]

What happens with the 4500 ActiveMining Shares?   they are not tradable at the moment.

[ft73]

Smidge.Com Letter to Shareholders / Buyback and close dates

Dear Shareholders,

Within two days after last week's announcement, we bought back more than two thirds of the outstanding shares. Thank you everyone for your quick responses.

Due to the buyout going along more quickly than we expected, we decided to move the closure date from Dec 31st to Dec 9th, to comply exactly with the 30 day timeframe posted in the "Fund closure" section of the business plan.

After about 90% loss it's already late to close and no reason to hurry.
Especially these times.

Being  malicious i think you are liquidating shareholders with almost nothing (10% of investment), while keeping for you the assets.
You already put many assets value to zero due to debatable reasons, which now sounds like an easy way to drive NAV lower than due.
Now you hurry to close the fund.

Maybe you are simply a terrible manager or maybe you are also scamming people.
I'm keeping an eye on this as well as keeping my shares till closing, as suggested by my lawyer.

EDIT:
Being a Ciphermine shareholder myself and given the actual dividend i get, i really wonder how they may be worth zero.
Funds actually owns 389 Ciphermine shares, i'd rate them at very least 5BTC alone. Very conservatively.
They may be easily worth 2x - 3x within a couple months.

So, after a massive loss (about 90%), shareholders are now spoiled of any recovery possibility by some arbitrary decision of closing the fund.
Wrong timing and wrong decision in my opinion.
This is bad, i wonder how some people is accepting this so passively.

If you are really willing to close, then distribute assets to the remaining shareholders, so we can possibly choose what to make of them.
I think it's an option we deserve, given the situation you put us into.

[stripykitteh]

Maybe you are simply a terrible manager or maybe you are also scamming people.
I'm keeping an eye on this as well as keeping my shares till closing, as suggested by my lawyer.

That's wise. I can understand the urge to be free of Smidge and selling up, but taking his crappy prices to do so seems like a bad idea.

[alexius89]

So still waiting? Whats happens With the shares rated Art 0

[Smidge]

After about 90% loss it's already late to close and no reason to hurry.
Especially these times.

Being  malicious i think you are liquidating shareholders with almost nothing (10% of investment), while keeping for you the assets.
You already put many assets value to zero due to debatable reasons, which now sounds like an easy way to drive NAV lower than due.
Now you hurry to close the fund.

Maybe you are simply a terrible manager or maybe you are also scamming people.
I'm keeping an eye on this as well as keeping my shares till closing, as suggested by my lawyer.

EDIT:
Being a Ciphermine shareholder myself and given the actual dividend i get, i really wonder how they may be worth zero.
Funds actually owns 389 Ciphermine shares, i'd rate them at very least 5BTC alone. Very conservatively.
They may be easily worth 2x - 3x within a couple months.

So, after a massive loss (about 90%), shareholders are now spoiled of any recovery possibility by some arbitrary decision of closing the fund.
Wrong timing and wrong decision in my opinion.
This is bad, i wonder how some people is accepting this so passively.

If you are really willing to close, then distribute assets to the remaining shareholders, so we can possibly choose what to make of them.
I think it's an option we deserve, given the situation you put us into.

So still waiting? Whats happens With the shares rated Art 0

Hi,

As already pointed out several times before, all shares will be liquidated as soon as there is a fair market price for them. This is a separate process from the wind down that we are currently doing.

As soon as ActiveMining and Ciphermine are tradeable again, we will also liquidate those positions and return the proceeds to the respective owners, which are our shareholders. Also, it does not make sense to hold shares until the last day, as the handling of the currently untradeable securities will be processed separately, as explained.

Being  malicious (...)

Hi ft73,

I think it is very important to play Devil's Advocate from time to time to ensure everything goes as planned. We also need this feedback to optimize the processes. But please be a little more cautious with scam accusations, as we are handling both processes with great care.

There will be an announcement about any buybacks, liquidations etc. as soon as they happen. This will be done via E-Mail, as always.

(Untradeable shares...) are still displayed at a price of 0 for now, until we see trading activity on them. Therefore, NAV might seem lower in the balance sheet than it actually is.

[ft73]

As already pointed out several times before, all shares will be liquidated as soon as there is a fair market price for them. This is a separate process from the wind down that we are currently doing.

What about any "fair" market price possibily reached into 2-3 months?
The fund will be closed already.

Hi ft73,

I think it is very important to play Devil's Advocate from time to time to ensure everything goes as planned. We also need this feedback to optimize the processes. But please be a little more cautious with scam accusations, as we are handling both processes with great care.

There will be an announcement about any buybacks, liquidations etc. as soon as they happen. This will be done via E-Mail, as always.

I'm glad you appreciate my feedback.
I was very cautios till now, too much actually, leaving things go from bad to worse.

To be sincere, i completely miss the "care" applied to both fund performance and current wind down.
What i see is shareholders spoiled and then put into a corner, with the fund closure notice.

I hope no scamming is involved, but the way you are operating is indeed suspect to me (especially the hurry), so i definetely won't exclude scamming until some proof.

Keeping an eye on this.