Quote from: a343b343 on December 16, 2013, 08:57:47 PM

Time to finally say something with my lurker account...

I think Havelock CaVirtex (VTX) holders are about to see price collapse. Why?

Exit price is fixed at $30 a share.

Above, user freedomno1 linked to a copy of the original prospectus:
https://bitcointalk.org/index.php?topic=218435.msg3958831#msg3958831
From the prospectus on page 10:
" ⁵ 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 [March 18, 2013] 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."

VTX will be converted into physical non-tradeable certificates,

The value of the securities which these will be converted into is fixed in the articles of incorporation at $30 CAD, and they are non-tradeable. From Havelock: "to enable holders at the Effective Time to receive physical share certificates... The shares represented by the share certificates are not, and will not be for the foreseeable future, listed on a stock exchange and are subject to transfer restrictions under applicable securities laws."
https://www.havelockinvestments.com/fund.php?symbol=VTX

Current price of VTX at Havelock?
BTC 0.14 (~$118.48)
"Adjusted" exit price?
BTC 0.032ish is 30 Canadian dollars in BTC per share...
An 80% loss instantly vacuuming up all the unprotected shareholder value.

Wow...

Actually the 30 CAD share price is in reference to if CaVirtex is bought out. But there is no indication they are being bought out.

In fact they appear to have simply breached this part of the prospectus (the one they subsequently tried to hide):

Once the IPO is sold out, these shares can be traded on HAVELOCK at user determined prices.

If anyone is a lawyer or knows one familiar with Canadian law perhaps they could contact me or comment on what appears to be a breach of contract. It seems to me that they cannot delist from Havelock without being open to being sued?