Post
Topic
Board Hardware
Re: Eyes to the horizon: A bitcoin ASIC project will be announced in June
by
blackreplica
on 25/07/2013, 03:10:50 UTC
This section concerns me:

"Each share has the same dividends and there will be no more additional shares to be brought in unless a proclamation in advance, which, mostly likely,caused by a big movement/progress/project(examples:new generation of 40nm chips / full custom design systems / new large-scale hashrate deployment ). To protect the interests of shareholders,BTCGARDEN will never add more than 1,000,000 shares per half year."

It reeks of unilateral, unrestrained share dilution.

We need to see a hard limit on issued share capital and any changes beyond this limit must only be allowable with at least a minimum of 51% (preferably higher) acceptance by current shareholders.

However, theres this:

"Initially,each 1 share of BTCGARDEN represents to 1/10,000,000th of the dividends of the whole 10,000,000 shares."

So a maximum issuance of 10,000,000 shares then? With 2,400,000 issued initially?

Does anyone actually hold the unissued 7,600,000 shares at IPO? If not, then why are dividends issued on unissued share capital? Who enjoys these dividends?

If no one owns the shares, why then are dividends paid on 10,000,000 shares and not 2,400,000?

If these shares are already issued and owned, how come they can be issued at will (with proclamation in advance) at a rate no greater than 1,000,000 per 6 months?

Is the business owner intentionally issuing only 24% of share capital with a view to selling the remaining 76% over time to enrichen himself at the expense of the present shareholders? How many would be willing to buy shares in a company knowing they could be diluted 3 to 1 at any time in future, with no recourse?

There are inconsistencies here that require clarification