Re: [HAVELOCK] PETAMINE - NEW IPO, NEW HARDWARE, 1,500 TH/S HASH RATE
You guys realize, that the issuer automatically owns all unsold shares, right? No need to buy shares from yourself if you own them anyway.
This is incorrect, there is a very large difference. Unsold shares do not collect dividends, if he were to purchase the shares, he would receive dividends and would have a personal incentive to expedite the return of our dividends. The current reinvestment schedule provides a disproportionate benefit to the person collecting fees to run the mine while shareholders receive a small fraction of the mined bitcoins.
Also, unsold shares can be used for a later IPO where our trading could be frozen again etc.
[...]
I beg to disagree. Both Prospectus versions state the following:
Quote
All units are entitled to an equal percentage of dividends. A total of 100,000 units are outstanding. [...]
It does not say anywhere, that only publicly traded shares (units) are entitled to dividends. However, I do acknowledge that cryptx has so far been so generous to treat it like this, thus not paying themselves a dividend for holding the ~33.000 outstanding but not publicly traded shares.
Shares represent fractions of a company's equity. If a company makes a profit, equity is increased. The company may now choose to pay some of the profits to its shareholders in the form of dividends. If it chooses to do so, a dividend is paid per outstanding share to the respective owner. No matter if that is an owner outside the company (here parts of the profits actually leave the company) or the company itself (increase in equity).
Let me ask you a question: How do you buy parts of your own equity, if not by paying with parts of your own equity or borrowed money?
However, please don't get me wrong. It was a smart move to announce "buying" own shares, as it greatly improved confidence of potential investors. Obviously, the announcement had the signalling effect it was intended to provoke. Well done!
