Cavirtex Private Shares

[josh4580]

I invested in Cavirtex (https://www.cavirtex.com/home) on Havelock Investments.  They have since gone private and were supposed to mail out shareholders certificates and financial information.

I have not received anything yet from the company.

Have any Cavirtex investors out there received anything yet?

Thanks,

[Kosmatos]

At his talk at the Bitcoin Expo 2014 in Toronto, Joseph David said that shareholders will be receiving their official shareholder papers by mail sometime in April (IIRC), in batches a week at a time for a few weeks, or something like that.

Basically, they're working on it and should soon send something.

[gogxmagog]

I'm a Canadian and I have used CaVirtex for a while. As far as the Canadian market is concerned, they're a high volume exchange and more or less had a corner on the Canadian market because they got all their ducks in a row (KYC and working w/ major Canadian banks etc.) and they remain reliable (for a while they were the only game in town for Canadians), but Vault of Satoshi could very well unseat them as top dog now that VoS is moving forward in the USA state by state, plus VoS has transparent proof of solvency.
CaVirtex charges such exorbitant fees that I kinda wanted to invest at one point if even to reap back a little of those fees and high prices I've paid into them. They MUST be making money, but Vault of Satoshi could become the real mammoth here.

[Kosmatos]

I'm a Canadian and I have used CaVirtex for a while. As far as the Canadian market is concerned, they're a high volume exchange and more or less had a corner on the Canadian market because they got all their ducks in a row (KYC and working w/ major Canadian banks etc.) and they remain reliable (for a while they were the only game in town for Canadians), but Vault of Satoshi could very well unseat them as top dog now that VoS is moving forward in the USA state by state, plus VoS has transparent proof of solvency.
CaVirtex charges such exorbitant fees that I kinda wanted to invest at one point if even to reap back a little of those fees and high prices I've paid into them. They MUST be making money, but Vault of Satoshi could become the real mammoth here.

Proof of solvency is cute, but VoS is still a centralized exchange, holding all the bitcoins for the trades, and is thus just as vulnerable as Mt.Gox was. If suddenly the proof of solvency shows that VoS is insolvent, what good does it do for all those that are already using it?

The fact that VoS is multinational is not necessarily a good thing either.

As for Cavirtex, you can calculate what the lion's share of the money they make is by simply multiplying their $80 million total transaction amount by the 3% fees they make (1.5% from the seller, 1.5% from the buyer) and see that they have made $2.4 million in total fees in their businesse's lifetime. It's not that much for a business of 20 employees. Shareholders won't get many dividends with that kind of money. Cavirtex need to grow, and it looks like they are trying to do it very carefully.

[gogxmagog]

True, because Canada is a tiny market. 34.88 million people as opposed to USA's 313.9 million. VoS is wisely concentrating their regulatory efforts in America, state by state, so consumers can deal with them through their bank easily and quickly. Cavirtex will accept foreign deposits only after VERY lengthy verification process followed by very long waits on deposits with prohibitively high fees. If VoS gains a foothold in the states, follows through, and does it right, they will become top dog.

of course VoS are unproven as to their reliability, and their being based in Quebec gives me pause to doubt. (highest amount of organized crime activity in Canada)

[josh4580]

At his talk at the Bitcoin Expo 2014 in Toronto, Joseph David said that shareholders will be receiving their official shareholder papers by mail sometime in April (IIRC), in batches a week at a time for a few weeks, or something like that.

Basically, they're working on it and should soon send something.

Any update on this?

I haven't received anything yet.

[removebeforeflight]

Nothing yet, but have been told this week.

[Kosmatos]

A shareholder I know has informed me that they received their certificate today in PDF format by email. I imagine everybody should get theirs this month, if not this week.

[_mr_e]

I just received my share certificate via email last night, I'm sure you'll be getting yours soon!

[josh4580]

Has anyone else received a buyback offer for Cavirtex shares from Joseph David, the CEO?

The buy back offer is for CAD$0.40 or 0.00070052 BTC per share (the equivalent of CAD$40 or 0.070052 BTC per unit as then listed on Havelock)

The offer expires Sept 25th, 2014. 

It seems like a very low price.  I wonder if you decide to keep your shares, do you have to prove you are an accredited investor?

[troc]

Wow. Legit or not, cavirtex sure know how to dupe their early investors.

Havelock why did you not thwart this scuzzy, if not outright scammy, maneouvre ? Is this because you have no teeth or is it because you have no spine ? Or both ?

[dropt]

Has anyone else received a buyback offer for Cavirtex shares from Joseph David, the CEO?

The buy back offer is for CAD$0.40 or 0.00070052 BTC per share (the equivalent of CAD$40 or 0.070052 BTC per unit as then listed on Havelock)

The offer expires Sept 25th, 2014. 

It seems like a very low price.  I wonder if you decide to keep your shares, do you have to prove you are an accredited investor?

It's $0.40 if you've already converted, $40 if you haven't.

For those unaware, when registering the shares you were to multiply your actual held by 100 to deduce your new share count.  I.E. 25 shares pre-registration turned into 2500 shares post registration.  Either way, those 25 (2500) shares are valued at $1000.

[MrWDunne]

Wow. Legit or not, cavirtex sure know how to dupe their early investors.

Havelock why did you not thwart this scuzzy, if not outright scammy, maneouvre ? Is this because you have no teeth or is it because you have no spine ? Or both ?

What would you suggest they do?

Anyhow its not a forced buy back and the price is actually the same in CAD$ (1 share on Havelock is now 100 shares IRL)

[tigereye]

I have also received this and am not sure how to proceed.

If we don't participate in the buyback, what happens?

[Swordsoffreedom]

I have also received this and am not sure how to proceed.

If we don't participate in the buyback, what happens?

There is a discussion of this in the official Cavirtex thread as well but to quote from it if you take the deal you can't sue and you make a 10 dollar fiat gain from the IPO price and take a 50% Bitcoin loss from the havelock closing price.
If you don't participate in the buyback you retain your right to sue and ownership of the company but no votes.
Should you choose to not exercise your right of rescission you will remain a Class "B" Non-Voting shareholder of the Company.
___

As you know, 1612643 Alberta Inc. operating as CA Virtex, (the "Company") delisted from havelockinvestments.com ("Havelock") effective December 31, 2013, following which all holders of an interest in the Company purchased on Havelock were issued Class "B" Non-Voting Shares in the capital of the Company.  Many shareholders provided their registration details and were subsequently provided with a copy of the share certificate evidencing their Non-Voting Shares.  Part of the registration process was designed to assist the Company in reviewing prior sales of its securities to ensure compliance with applicable securities laws. As the Company has not prepared a prospectus qualifying the distribution of its securities it must comply with applicable exempt financing rules relating to the sale of its shares. This means that each purchaser of the Company's shares must qualify as an "accredited investor". The Company has made attempts to identify accredited investors throughout the registration process.  Many shareholders, however, have not responded to the Company's requests for registration information.  As a result of the difficulty in completing the registration process, the Company has determined to offer (the "Offer") a right of rescission to all of the Class "B" Non-Voting shareholders, without regard to whether or not registration details were previously provided.

The Offer is being made to all Class "B" Non-Voting shareholders on the basis of CAD$0.40 or 0.00070052 BTC per share (the "Offer Price") (or, prior to giving effect to the conversion to Class "B" Non-Voting Shares, the equivalent of CAD$40 or 0.070052 BTC per unit as then listed on Havelock).  Should you exercise your right of rescission, you will receive an amount equal to the Offer Price multiplied by the number of Class "B" shares held by you, payable in BTC or Canadian dollars.  If you elect to be paid in BTC then payment will be made at a fixed exchange rate of CAD$571/BTC.  The Offer Price will be paid without interest or deduction and, in making the election to accept the Offer, you will be deemed to have never been a shareholder or have any other interest or rights in or relating to the Company and you agree to waive any right to pursue the Company at law or in equity for any claim in any jurisdiction against the Company and its officers, directors and employees.  The Offer will remain open for 35 days, until 9/25/2014, 2014 at 4:00PM MST (the "Expiry Time").  Should you choose to not exercise your right of rescission you will remain a Class "B" Non-Voting shareholder of the Company.  To accept the Offer please reply by return email indicating your acceptance of the Offer (in BTC or CAD) and providing the applicable BTC address for payment in BTC. For payment in CAD, you must have a Canadian Bank account and be able to accept and electronic funds transfer credit, you will be provided details on setup when you respond.

Should you have any questions regarding this matter, please reply to this e-mail.
Authorized By: Joseph David per 1612643 ALBERTA INC.

Thank-you
Jennifer Kirk
CaVirtEx Executive Assistant 

[Flashman]

Note that "accredited investor" has a specific meaning...

http://www.osc.gov.on.ca/en/21943.htm

So it could be the case that unless you provide your OSC registration details, you will be forcibly refunded.

[Swordsoffreedom]

Note that "accredited investor" has a specific meaning...

http://www.osc.gov.on.ca/en/21943.htm

So it could be the case that unless you provide your OSC registration details, you will be forcibly refunded.

If I recall correctly cavirtex said you didn't need to be accredited, so now I'm not sure if that legal definition did change.
That said it would be hard to forcibly refund someone who didn't provide details seems like they would time out and be forced to take the money if they respond past the deadline.

[removebeforeflight]

I read their note as a forced buy back (for non accredited investors).
Can anyone confirm that?

[lunarboy]

I read their note as a forced buy back (for non accredited investors).
Can anyone confirm that?

"As a result of the difficulty in completing the registration process, the Company has determined to offer (the "Offer") a right of rescission to all of the Class "B" Non-Voting shareholders, without regard to whether or not registration details were previously provided."

"The Offer will remain open for 35 days, until 9/25/2014, 2014 at 4:00PM MST (the "Expiry Time").  Should you choose to not exercise your right of rescission you will remain a Class "B" Non-Voting shareholder of the Company."

It's all there in the mail. The question remains. Is

Non-Voting Shares, the equivalent of CAD$40 or 0.070052 BTC per unit as then listed on Havelock

an acceptable buyback price? and how many of you think this is a good deal?

[Swordsoffreedom]

Since there is only one week left on this proposal curious how the market settled it
Aka who went and took the deal and who did not.