Topic: [HAVELOCK] SF1 - Announcement of Consultation Poll (Trading Halted) - page 2. (Read 4199 times)

I also would like a straight answer as well. All the info implies that it's just and offer willing to be accepted our not. Even the second question is asking if you want to convert to holdings in SHL which is the holding company of all equity stakes. Per the prospectus your SF1 shares already are your stake in SHL however it seems a conversion to SHL more or less legitimizes your investment in paper compared to just being on a site like Havelock.

However the possibility still remains of allowing larger holders to convert to SHL holding then forcing a buyback and removing the listing from Havelock. I'd rather convert to SHL then be forced to buy back but would feel sorry for anyone below the limit to do so or is not eligible to do so.

My guess at your reason for offering the buyback was a reasonable assumption given the information we had about the motivation for the buyback offer (no reason given) and where the money would come from (no info before, but you've explained above). 

In any case, you haven't even confirmed or denied that the buyback would be voluntary if offered and not forced, and you've twice dodged my questions about the motivation for a buyback offer.  By your admission you've raised new funds from private investors.  Has someone come along and offered to buy out SF1?  What are the terms?  This would be something that would affect the decisions made by SF1 investors.

Even if this isn't a deliberate  scam or attempt to defraud your investors, your lack of answers makes me feel like Seedcoin is not acting in good faith.  Simply answering a couple questions, rather than attacking the people who may have invested, would go a long way to clearing that up.

That seems quite a reasonable statement for someone who downgraded our Trust rating here by posting that:
"Seedcoin scammed users out of at least 1100 BTC. Offered 2 million shares at 0.001 BTC each (2000 BTC total) and then tried to buy them back for .00045 BTC each (900 BTC total), pocketing the rest."

I would be interested to read your explanation about where Seeedcoin has been 'pocketing' the rest since funds which have been raised have been paid out to the startups as planned and along a calendar of drawdowns agreed with both the entrepreneurs and Havelock. If we offered investors BTC0.00045 per unit we would be buying these with new funds raised from private investors and completely unrelated to the SF1 fund raising. That would not be a 'pocketing' but a fresh outlay of bitcoins.

The statment

"considering you were eligible to accept such an offer, would you accept this offer?"

Leads me to at least think that it's just going to be an offer you can choose to accept or not. That's at least my interpretation of the phrasing.

We don't know if this is a forced buyback or not - that was never stated.  If the offer is made, and participating in the buyback is voluntary, I don't see that as an issue.  I agree that a lot of people probably got in to the fund without any idea of how long it might take to pay back, and this would give those investors an out. 

Nope as I stated above I'm invested in them pretty well so I have an interest in it which is why i decide to actually take time and post.

Aha.  A disinterested educator.  Gotcha

No alt I was a lurker til your post NotLambchop back in June about "why do you invest?". I think many people have a huge misunderstanding of the fund and what to expect so I try to clear that up as I don't hear many with the same perspective.

Whose alt are you?  All of your posts seem are defending Seedcoin.  Nothing else.

I see this more as an out for those who do not want to continue with the fund. SF1 has been a very different model than most offerings and provided a service that isn't a short term dividend producing security. The price of the security is based on the market price and most people getting involved didn't realize this was a very long term security. The company has distributed most of their funds however one company fell through and no note to what is being done with that funding has been made public.

However look up the companies they funded talk to their owners and you will see that Seedcoin has been very active in providing the service they stated they would offer. From the moment the terms were agreed upon and fund distributed each share represented an unknown amount of equity. That equity hasn't changed( at least to public knowledge) but the market tanked. Why? Because bitcoin securities have such small markets that even one large sell off will tank it and hurt confidence in the market. If you look at how much volume has gone through SFI on Havelock. There hasn't been a ton over the months while bitcoin has gone through major changes. Some people didn't realize this would tie up their bitcoins for so long but a reasonable amount of research on the fund at the beginning would have shown that.

Now for the buy back price 0.00045 Yup its low as thats for more than 0.00075 bitcoins (0.0009 if you add in undistributed funds) that have been distributed your losing a lot however before today or even months ago you couldn't sell out any large quantity at that price. If you read their wording they state that if they made an offer to buy back for that price would you? They are not doing a forced buyback in the way they have phrased this. This is offering those who want their bitcoins out a reasonable offer based on the market. They get cheap shares of their fund and the seller gets instant access to bitcoins. Your only other option was to wait.

If they forced you to sell back then yes I would be very very pissed but right now I think it's just to allow those buyers who want out the ability to get out. They could literally do nothing and let the market go even lower or even just start buying shares at the lowest price points but instead they are looking at offering a deal to at a minimum help the market.

I think the issue is too many investors evaluated the security improperly and had very different expectations than what has happened. I think this is because a lot of bitcoin investors have very little knowledge or training in real investments. I invested in the ipo and slowly have been acquiring more as I personally still see this as a solid long term investment. The only thing I wish we could know is what level of equity is held by the fund in each company. Since we don't know that it leaves a big variable open.

But seriously hit up the companies they have funded on Twitter or email them to verify they are doing what was stated in the ipo which is funding and providing business assistance/consultation to build these into large global companies.

Edit: I'm holding and may consider the second option depending on the terms so long as the offer is reasonable compared to IPO and I don't have to convert all my shares as it's a fair means to diversify and I personally have confidence in the group running it.

The fact that your buyback offer is 3x the current price doesn't change the fact that it's less than 50% of the IPO price.  The reason why it's so low?  Lack of communication and lack of results, which is on you.  You don't get to pat yourself on the back for losing 55% of shareholder value.  The fact that some people bought at 0.0001 per unit and will make a pretty decent return isn't relevant to the people who you should care about, those who took a chance on the IPO.

Further, by your own contract, the only case that would warrant a buyback would be:  "In case of the acquisition or liquidation or any other major event affecting the shareholder structure of SFI, SFI shall reserve the right to close the listing following a public notice 30 days prior to closure, but in certain circumstances (including but not limited to the death or disability of the director), notice may not be provided in this fashion. Closure may be effected via a buyback of all outstanding shares. "

So, is there an acquisition, liquidation, or major event?  If so, what is it?  Those would be the only cases that could initiate a buyback.  Obviously any of these could affect the future value of SF1, which would help shareholders decide if they should accept the offer, if one is made.

SF1 unit price has been lower than 50% of the unit price at the time of the offering (or under BTC0.0005) for the past four months and below BTC0.003 for the past 3 months, last price was BTC0.00015 so BTC0.00045 represents 3 times the latest price (this is also mentioned in the consultation poll announcement).

Not all SF1 unit holders have been holding SF1 units since the offering time, some transactions have been registered below BTC0.0001 per unit so for some unit holders getting BTC0.00045 per unit is a very good deal.

There are legal limitations to the number of shareholders and there is a cost for processing each shareholder's application, hence the minimum threshold to convert units into shares. However, trading will resume as of October 8th 12 noon time EST, anyone with an insufficient amount of units may buy more then.

If, following the results of the poll, we decided to make an offer, we will motivate it in more details then. It is just a consultation for now.

For the record, their poll questions:

Also note that their email says "Please note that only SF1 unit holders holding more than 2,000 SF1 units may be eligible, at the time of the offer, to choose to convert their SF1 units into Seedco Holdings Limited shares."

So, for clarification, it's either take the buyback at less than half the IPO price, or have your equity converted to shares of Seedco Holdings Limited, but this option is only available if you have 2000 SF1 shares or more.

Further, the section on buybacks/termination of operation in the IPO prospectus states:

So, was there an acquisition, liquidation, or other major event that would necessitate a buyback?  What is the nature of the event?  This is something that shareholders would want to know before making a decision regarding their vote on a buyback or conversion. 

Looking forward to some answers.

SF1  - Announcement of Consultation Poll opened to SF1 unit holders

Temporary interruption of trading of 'SF1' units

The trading of 'SF1' units is temporarily halted under joint accord of Havelock Investments and Seedco Management Limited. The interruption is scheduled to last until October 8th, 12 noon time EST. During this period Seedco Management Limited would like to consult the SF1 unit holders regarding a potential unit buy back and/or unit conversion offer via a Consultation Poll which has been sent out to all SF1 unit holders.

Respondents may submit their answers to the consultation poll before the 8th of October, 2014 noon time EST.
 
Poll answers are for consultation only and will remain anonymous, only aggregate results will be published via Havelockinvestments.com.

Following the publication of the results of these polls SF1 units will resume trading on Havelockinvestments.com and Seedco Management Limited may proceed with a formal offer at a later date.