Topic: [GLBSE] Kronos Floating Bond, IPO on June 15th - page 3. (Read 5459 times)

Subscribed. Are you reserving a certain number of bonds for the GLBSE open market IPO?

A bond can't be used to valuate a company. This is a temporary fund-raising solution until it becomes preferable for Kronos to buy back the bond.

IPO has been given greenlight by GLBSE and can be viewed on their service @ https://glbse.com/ipo/84

ETA: profit % is correct on description in IPO page (was originally correct), but incorrect in the contract. Only GLBSE team can edit those. Total Kronos net profits being split among 175k shares is 20%.

My mistake -- forgot to convert to percentage. The actual percentage is .0001142571% -- in reality, it's something more like .00011428571428571428571428571428571%, or precisely (((1/5)*(1/175000))*100)

Fwiw - This bond is not offered by Kronos. IOU has purchased a bond from Kronos in a private contract and is using funds raised from this offering to pay Kronos.

I don't get it. You want to raise around ~20k BTC (175000*~0.112 BTC) but you're willing to only pay ~0.20% dividend (175000*0.000001142571%) of your every 14day profits, well that and ~1500 BTC with a buy back? Am I missing something?

Reserved.

Bonds remaining: 126,000 of 175,000
GLBSE page: https://glbse.com/ipo/84

TL;DR
IPO date: June 15th
Face Value: .1BTC
Dividends: .00011428571% of Kronos net profit per bond unit paid every 14 days
Buyback Value: .115BTC, will be bought back by 12/12/12

Price per unit by order's unit volume
1500-7499 shares: .1125BTC/bond
7500-15000: .11BTC/bond
>15000: .105BTC/bond[/b]

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Kronos. What is it?
Kronos is Bitcoinica on steroids - a leveraged trade platform built with security and urgency in mind. Kronos does not handle USD and leverages ZipConf for immediate deposits and GoxBTC withdrawals. That is, instead of waiting ~2h to be credited with BTC you deposit, you’ll be credited in 10-15 seconds. ZipConf has been extensively tested, and were a double-spend to successfully be executed, ZipConf is insuring the loss, so it wouldn’t affect Kronos. While it only uses BTC, you are still able to open positions shorting and going long with BTC due to the infrastructure behind Kronos.
 
You can take a look at Kronos by visiting Kronos.io – it’s currently “inner-circle, very early” beta, so very few people are being allowed to test. Large bond-buyers will be permitted an invite code for early use.
 
For investor information on Kronos, please see documentation at [ We'll be providing this as soon as we get it -- before June ]
 
Okay, so I know what Kronos is, now. What’s Kronos.BND and what’s its purpose?
Kronos.BND is a floating bond, paying .00011428571% of Kronos’ bi-weekly net profit per each bond every 14 days (thus, first dividends will be on June 29th), and is what will ensure Kronos has adequate funds to maintain operations (covering leveraged positions, for example) as well as for additional startup costs – paying the attorney, costs of getting everyone where they need to be, dedicated servers, getting the company publicly registered in Iceland, etc. In total, Kronos.BND will be paying out 20% of Kronos net profit. Dividends are not guaranteed, of course -- if Kronos operates at a net loss between last payment period and an upcoming payment period, then no dividends will be issued at the upcoming payment period.

It is likely that more bonds will be issued some time in the near-ish future (likely late June) at a price, date, and in an amount not yet determined.
 
Kronos.BND Buyback Provision
When Kronos management decides to buy back shares, they will pay a flat .115BTC per bond unit. An announcement will be made 15 days prior to the buyback actually happening.


I'm interested in buying pre-IPO. What's the price?
The minimum order is 1,500 shares. For orders with a purchase amount between 1500-7499 bonds, the price is .1125BTC/bond. For orders with an amount between 7500-15000 bonds, the price is .11BTC/bond. For orders with an amount greater than 15000 bonds, the price is .105BTC/bond. Orders of 7,500 bonds or more are welcome to a Kronos.io beta invite code.

Purchasers must pay within 7 days of making the reservation (or on June 14th, whichever is earliest). Those who have already purchased prior to this being implemented (07:30 UTC on 5/28) are not bound by this rule, but it'd be appreciated if they honored it. Anyone who does not pay within that time (excluding previous bond-reservers) will have their reservation invalidated.

There will be an IPO, where the minimum price will be .115BTC/bond. Because the IPO is done with an open-market order, there is no guarantee you will get bonds at the minimum price nor that you'll be able to purchase bonds if there are not enough available to fulfill your order.


Cheers,

IOU

GLBSE Contract:
"Introduction, Issuer, Bondholder, and Operator Liabilities" - 175,000 bonds ("Konos.BND") will be issued on June 15th, 2012. The Issuers of this bond are Ben Malec ("Kluge") and ineededausername, collectively known as "IOU," who are the final purchasers of the bonds hereby listed as part of a private contract between Kronos and IOU. The Issuer (IOU) of this security is not the Underlying Operator (Kronos) for which funds are being raised. Kronos Operators are NOT liable for this contract, the Issuers are. The Issuers are responsible for the entirety of this security's offering and purchasers of "secondary" bonds issued by the Issuer to investors. Investors must be accredited investors (self-certified or otherwise) to purchase this bond. By purchasing this bond and consequently agreeing to this contract, bondholders attest to being an accredited investor who is able to legally purchase this bond.

"Description, Dividends" - Kronos.BND is a floating bond, paying .0001142571% of Kronos’ bi-weekly profit per each bond every 14 days (thus, first dividend payment will be on June 29th). In total, these bonds represent 20% of Kronos' bi-weekly net profit which will be paid to bondholders. Each bond has a face value of .1BTC. These bonds ensure Kronos has adequate funds to maintain operations (providing credit for leveraged positions, for example) as well as for additional startup costs – paying the attorney, costs of getting everyone where they need to be, dedicated servers, getting the company publicly registered in Iceland, etc. Dividends rely on Kronos.io having a net profit. Dividends are not guaranteed. If Kronos operates at a loss during the span between payment periods, no dividends will be paid.

"Buyback" - A forced buyback will be initiated *BY* December 12th, 2012. A forced buyback may be initiated any time prior. The Issuer must publicly inform bondholders of a buyback 15 days in advance. At the time of buyback, the Issuer will pay bondholders .115BTC per bond unit.