Quote from: twentyseventy on April 30, 2014, 10:51:51 PM

Quote from: Mrrr on April 30, 2014, 08:10:55 PM

From what I read it is a 25BTC initial IPO for 250.000 shares (at 0.0001)
In the event of success a second IPO round will take place for 250BTC/ 250.000 shares (at 0.001)

Since initial shareholder's shares would count 10x, the total amount of shares would then be 2.750.000. So no dilution, but the opposite.

Not true.

Originally, there were to be only 250,000 shares issued at .0001 each. This was supposed to be the maximum amount of shares issued, as explicitly stated by Klye here:

**Citing my sources as I go here, so bear with me on the long comment

Quote from: MRKLYE on April 28, 2014, 11:11:11 AM

How can you get involved?

Klyemax Studio is currently selling shares for this business venture!

A total of 250,000 shares are to be sold.

No more will ever be created so you do not need to worry about your investment being diluted.

As an investor you will be entitled to what ever percentage of tips in relation to the shares you own.
If you owned 25,000 shares you would effectively get 1.5% of the tips from every show ever done.

The cost per a share is 0.0001 BTC
Only 250,000 shares will ever be sold.

This makes a total of 25 BTC of capital to be raised. Therefore, a user that purchased 10,000 shares for 1 BTC (like BitHub) would own 10,000 / 250,000 = 4% of the revenue share.

Quote from: MRKLYE on April 30, 2014, 07:10:04 AM

Quote from: BitHub on April 30, 2014, 04:31:44 AM

I BitHub would like to buy 10,000 shares for 1 BTC. Dividend address: 1CGPxUjd82XNwMk1pJPimzumbxdkneKfZz

tx id https://blockchain.info/tx/72401ae43d280d73143b69f72b065553023d29b9a7c32ddfcae8f59060f7abfd

thanks and all the best.

BTC received. Adding you to the shareholder list.

You are now the #1 shareholder Bithub! Owning 4% of all shares available.

Thank you for your interest in Klyemax Studios!

Cheers,

Kyle.T

Even using Klye's own example from the Original IPO post, a user who purchases 25,000 shares out of the 250,000 will own 1.5% of all company revenue. (Revenue share is 15% to the investors; a user owning 25K out of 250K shares is 10% shareholder, 15% * 10% = 1.5%

Quote from: MRKLYE on April 28, 2014, 11:11:11 AM

No more will ever be created so you do not need to worry about your investment being diluted.

As an investor you will be entitled to what ever percentage of tips in relation to the shares you own.
If you owned 25,000 shares you would effectively get 1.5% of the tips from every show ever done.

SO, back to using BitHub as the example here (hope you don't mind, BitHub). BH has just purchased 10,000 shares and now contentedly owns 4% of the revenue share.

Now, Klye comes back and says - "Hey! Actually, I want to raise more money! Everyone from Phase 1 will get 10X the shares and then I'll have Phase 2 where there will be only 250,000 shares!"

Now, assuming that we make it to Phase 2, this means that there will be 2.5 Million shares from Phase 1 and 250K shares from Phase 2 = 2.75 Million shares.

Quote from: MRKLYE on April 30, 2014, 09:41:29 PM

Quote from: Mrrr on April 30, 2014, 08:10:55 PM

From what I read it is a 25BTC initial IPO for 250.000 shares (at 0.0001)
In the event of success a second IPO round will take place for 250BTC/ 250.000 shares (at 0.001)

Since initial shareholder's shares would count 10x, the total amount of shares would then be 2.750.000. ~~So no dilution, but the opposite.~~

Thank you for clarifying this Mrrr. I thought I had this written out more clearly.

The strikeout emphasis is mine, since it is incorrect.

Now, would BitHub rather own 10,000 / 250,000 shares = 4% of the revenue share?

Or would he rather own 100,000 / 2,750,000 shares = 3.63636363% of the revenue share?

Clearly, any investor would prefer the former. So, there is dilution going on here despite Mr. Klye's initial promise that he would:

A) never sell more shares than 250K and,
B) never dilute the outstanding shares

Quote from: MRKLYE on April 28, 2014, 11:11:11 AM

No more will ever be created so you do not need to worry about your investment being diluted.

As an investor you will be entitled to what ever percentage of tips in relation to the shares you own.

I've read and re-read the post, but I don't see where I could have miscontrued Klye's confirmation of Mrrr's comment.

If there are going to be 2.75 Million shares and current investors are only getting 10x shares, then they are getting a bad deal, especially since it was promised that there would be no dilution. What Klye should have done is up the Phase 1 offering to 2.25 Million Shares @ .0001 BTC (he'll have to live without that extra 2.5 BTC for now) and still increase investors' shares 10x, while holding the last 250,000 shares for the Phase 2 IPO.

That way, there are still 250,000 shares on hold for Phase 2 and current investors don't see any dilution.

Well. First of all, disclaimer:

Quote from: twentyseventy on April 30, 2014, 07:17:12 PM

Not an investor, just wondering out loud-

(shit, think I'll print this on a T-Shirt Wink

Second of all: yes OP should rewrite the offering to be a bit more clear. Because as it stands now you are completely right. Of course the 2nd round of shares would technically mean a 10% dilution, but I'd rather look at it as a 910% value increase for round 1 investors. I'm rather confident that Bithub (sorry Bithub) would rather own a 3.63% stake in a company that has the ability to expand rather than a 4% stake in a company that is, by contract, bound to finance any expansion through a meager 15% wanker tax while paying its contractors and shareholders an honest fee.

So OP should sit down and rewrite the IPO in such fashion that it reflects exactly what is being offered. I'm not betting my reputation here (if any in the first place) but it seems to me that OP is not acting out of malevolence. To me it seems OP just doesn't have a lot of experience in seeking public funding.

That's never an excuse of course, and OP should fix the IPO text. But don't burn him for that. I've seen worse IPOs on these boards seeking millions of dollars in funding rather than the 12000$ we're talking about here.