Quote from: Jutarul on March 28, 2013, 07:03:41 PM

Quote from: friedcat on March 28, 2013, 01:53:38 PM

Update

Clarification of Unsold Shares
Now ASICMINER controls 163,962/400,000 of the whole identity, while Bitfountain controls 236,038/400,000. The former shares will not be diluted, while the latter will. Whenever we need to sell shares to raise funds or giving potential core employees shares/options, only our (Bitfountain's) shares will be reduced.

We consider it to be very fair to investors, because while either letting the investors break even first or protecting the investors from dilution are seen everywhere, having both at the same time is not that common, especially when the portion at the investors' side is already large.

As an answer to:

Quote from: Jutarul on March 27, 2013, 03:33:27 AM

Nevertheless, bitfountain has to decide how they want to handle the issue.

So expect the distribution key to be 164k:236k, and in future 1/163,962 over 41% of all dividend payments for each share. So this is in effect a 5% reduction in dividend payments for ASICMINER shareholders as expected per contract (where 50% would go to ASICMINER). However, this comes with the insurance of no further dilution, which I consider priceless, and for that reason I approve. Also 1/163,962 of 41% is equivalent to 1/200,000 of 50%, so it's not unexpected based on the contract if all shares had sold. (you can see where the fuzziness came from)

Seems reasonable. But what happend to dividends of unsold shares? Have unsold shares receive dividends? If not, IPO shares received 1/163962 of mining profits each and not 1/200000 (until IPO break-even). If unsold shares received dividends, however, they shouldnt have been entitled to IPO break-even privileges, because nobody actually invested. In either case there are contradictions of what has been stated here.

Please clarify this. Maybe i just dont get it...