Payment of a dividend should be the last thing in our minds.
This company can grow really big. It will need the cash for growth.
Topic: [IPVO] [Multiple Exchanges] Neo & Bee - LMB Holdings - page 142. (Read 658701 times)
If you read their prospectus you will understand the business model.
Their growth is reliant on customer deposits and business transaction accounts. They need to increase the customer base every month for several months and these customers need to deposit Euros. The Euro deposits are then converted to BTC. If the BTC/EUR rate increases like projected then this difference will be profit for NEOBEE. They also have some income derived from trading but the information about this is not public. If the BTC/EUR rate drops then they will need to top up the depositors accounts with BTC to cover the EUR amount.
Their growth is reliant on customer deposits and business transaction accounts. They need to increase the customer base every month for several months and these customers need to deposit Euros. The Euro deposits are then converted to BTC. If the BTC/EUR rate increases like projected then this difference will be profit for NEOBEE. They also have some income derived from trading but the information about this is not public. If the BTC/EUR rate drops then they will need to top up the depositors accounts with BTC to cover the EUR amount.
I've read it, although it was a couple weeks ago, some specifics may not be fresh.
How can you increase your customer base without spending capital?
If they wanted big focus on growth they shouldn't have included a dividend in their prospectus but they did it to lure investors and now they have to follow through. Bitcoin community is used to getting regular weekly dividends from miner stocks and including a dividend helped them A LOT with selling their shares.
Lots of big companies don't pay a dividend as they want full focus on growth, like Apple for example in the Steve Jobs era.
If they start issuing bonds then they will just be a ponzi like the American Treasury and FED.
Not really. Corporate bonds are widely used and popular way of getting money.
https://en.wikipedia.org/wiki/Corporate_bond
They will be spending the IPO capital to increase the customer base. If they run out of capital before they have enough customers to turn a profit then they fail and we lose our investment.
I think the point is that if they need to spend money to increase customers at a later point this will be a business expense and will be spent before it makes it to the profit part of their accounts.
I think the point is that if they need to spend money to increase customers at a later point this will be a business expense and will be spent before it makes it to the profit part of their accounts.
If you read their prospectus you will understand the business model.
Their growth is reliant on customer deposits and business transaction accounts. They need to increase the customer base every month for several months and these customers need to deposit Euros. The Euro deposits are then converted to BTC. If the BTC/EUR rate increases like projected then this difference will be profit for NEOBEE. They also have some income derived from trading but the information about this is not public. If the BTC/EUR rate drops then they will need to top up the depositors accounts with BTC to cover the EUR amount.
Their growth is reliant on customer deposits and business transaction accounts. They need to increase the customer base every month for several months and these customers need to deposit Euros. The Euro deposits are then converted to BTC. If the BTC/EUR rate increases like projected then this difference will be profit for NEOBEE. They also have some income derived from trading but the information about this is not public. If the BTC/EUR rate drops then they will need to top up the depositors accounts with BTC to cover the EUR amount.
I've read it, although it was a couple weeks ago, some specifics may not be fresh.
How can you increase your customer base without spending capital?
If you read their prospectus you will understand the business model.
Their growth is reliant on customer deposits and business transaction accounts. They need to increase the customer base every month for several months and these customers need to deposit Euros. The Euro deposits are then converted to BTC. If the BTC/EUR rate increases like projected then this difference will be profit for NEOBEE. They also have some income derived from trading but the information about this is not public. If the BTC/EUR rate drops then they will need to top up the depositors accounts with BTC to cover the EUR amount.
Their growth is reliant on customer deposits and business transaction accounts. They need to increase the customer base every month for several months and these customers need to deposit Euros. The Euro deposits are then converted to BTC. If the BTC/EUR rate increases like projected then this difference will be profit for NEOBEE. They also have some income derived from trading but the information about this is not public. If the BTC/EUR rate drops then they will need to top up the depositors accounts with BTC to cover the EUR amount.
Sigh...perhaps I should have approached it differently.
If they are successful early on and able to pay dividends, why are they not using the capital for growth? There is a reason why start-ups and high growth (potential) companies typically do not pay dividends. If they are successful, they need it for growth. If they are not successful, they cannot afford it.
If they are successful early on and able to pay dividends, why are they not using the capital for growth? There is a reason why start-ups and high growth (potential) companies typically do not pay dividends. If they are successful, they need it for growth. If they are not successful, they cannot afford it.
If they start issuing bonds then they will just be a ponzi like the American Treasury and FED.
You should read the IPO (page 1) before commenting.
"Future Shares
No additional shares shall be issued, and total outstanding shares shall perpetually remain at 16,000,000. Any future capital raised through sale of shares after the IPVO shall be sales of shares, currently 40%, owned by LMB Subsidiaries Limited (UK). "
"Future Shares
No additional shares shall be issued, and total outstanding shares shall perpetually remain at 16,000,000. Any future capital raised through sale of shares after the IPVO shall be sales of shares, currently 40%, owned by LMB Subsidiaries Limited (UK). "
I've said stocks/bonds. Issuing bonds would be different story. The bond buyers offer a credit line to the company in exchange for a profit share, fixed income or some other arrangement like convertible bonds.
Though...if you read the full version, prospectus states:
Quote
Forward-looking statements are based upon assumptions which the directors consider reasonable, but are subject to change due to unexpected events, market shifts, or unforseen circumstances. Although forward-looking statements are believed to be realistic, no representation are made as to their ultimate attainability.
The document is not necessarily up-to-date. LMB Holdings reserves the right to alter, update or remove the information provided in this document at any time without notice.
The document is not necessarily up-to-date. LMB Holdings reserves the right to alter, update or remove the information provided in this document at any time without notice.
You should read the IPO (page 1) before commenting.
"Future Shares
No additional shares shall be issued, and total outstanding shares shall perpetually remain at 16,000,000. Any future capital raised through sale of shares after the IPVO shall be sales of shares, currently 40%, owned by LMB Subsidiaries Limited (UK). "
"Future Shares
No additional shares shall be issued, and total outstanding shares shall perpetually remain at 16,000,000. Any future capital raised through sale of shares after the IPVO shall be sales of shares, currently 40%, owned by LMB Subsidiaries Limited (UK). "
Quote
Investor Protection Plan
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
Won't be very cool now to go back on their word.The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
Quote
Dividend payments
The global income of LMB Holdings, including operating profits from all LMB Holdings subsidiaries, will be paid to the LMB Holdings shareholders proportionally, after all operating, growth and miscellaneous expenses are deducted. The 9,600,000 public shares will receive the first dividends up to the value of 0.0035BTC/share, providing public investors a priority in receiving a minimum of 100% return on their investment. Dividend payments will be made on the last working day of each quarter at midnight (GMT+2).
The global income of LMB Holdings, including operating profits from all LMB Holdings subsidiaries, will be paid to the LMB Holdings shareholders proportionally, after all operating, growth and miscellaneous expenses are deducted. The 9,600,000 public shares will receive the first dividends up to the value of 0.0035BTC/share, providing public investors a priority in receiving a minimum of 100% return on their investment. Dividend payments will be made on the last working day of each quarter at midnight (GMT+2).
Don't get me wrong, I like the idea and hope they succeed as it will be a huge positive for bitcoin. If they are successful, they probably will need the capital for growth. People need to keep in mind that this is a longer term investment (compared to any other bitcoin investment). I wouldn't expect dividends for awhile.
Of course they may just payout dividends anyway or have so much cash they don't need it for growth. I'm not sure how likely these two scenarios are.
They'll have to pay back those 0.0035/share asap, especially if they wanna issue more shares or bonds to finance further growth. Otherwise no one would touch another stock/bond offering.That's another way to go about it, issuing more shares or selling bonds.
They will be producing quarterly financial reports, any profits made will be paid as dividends. The business plan is based on continued income streams from depositors and business accounts, plus other trading methods. They will not need to keep profits for growth. However if they want to set up another branch they could include the cost as an operating expense which would reduce the profit for that quarter. Some companies never actually make a profit on paper for tax purposes like Starbucks and instead channel the money through subsidiaries for vastly inflated operating expenses...
Profits = income - expenses
Profits = income - expenses
Quote
Investor Protection Plan
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
Won't be very cool now to go back on their word.The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
Quote
Dividend payments
The global income of LMB Holdings, including operating profits from all LMB Holdings subsidiaries, will be paid to the LMB Holdings shareholders proportionally, after all operating, growth and miscellaneous expenses are deducted. The 9,600,000 public shares will receive the first dividends up to the value of 0.0035BTC/share, providing public investors a priority in receiving a minimum of 100% return on their investment. Dividend payments will be made on the last working day of each quarter at midnight (GMT+2).
The global income of LMB Holdings, including operating profits from all LMB Holdings subsidiaries, will be paid to the LMB Holdings shareholders proportionally, after all operating, growth and miscellaneous expenses are deducted. The 9,600,000 public shares will receive the first dividends up to the value of 0.0035BTC/share, providing public investors a priority in receiving a minimum of 100% return on their investment. Dividend payments will be made on the last working day of each quarter at midnight (GMT+2).
Don't get me wrong, I like the idea and hope they succeed as it will be a huge positive for bitcoin. If they are successful, they probably will need the capital for growth. People need to keep in mind that this is a longer term investment (compared to any other bitcoin investment). I wouldn't expect dividends for awhile.
Of course they may just payout dividends anyway or have so much cash they don't need it for growth. I'm not sure how likely these two scenarios are.
As far as the payment of dividend is concerned:
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
To be honest, it almost seems like the dividends (that bitcoiners have come to expect with securities) were "thrown in" as an afterthought. For a start up of this nature, I would expect them to retain all profits for growth. Don't count on them paying dividends anytime soon, even if they are profitable.
Of course they could have specifically addressed this already. It has been awhile since I read everything, so I may be wrong.
Yeah, they have. Public shareholders will get first profits as dividends until they get back 0.0035btc/share.
Quote
Investor Protection Plan
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
Yes public shareholders will get paid first, but when would they actually pay dividends? If they are successful, they will need the capital to grow. Couldn't they just retain all profits for growth?
Quote
Investor Protection Plan
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
The "all profits" part makes it pretty clear. Won't be very cool now to go back on their word. The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
As far as the payment of dividend is concerned:
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
To be honest, it almost seems like the dividends (that bitcoiners have come to expect with securities) were "thrown in" as an afterthought. For a start up of this nature, I would expect them to retain all profits for growth. Don't count on them paying dividends anytime soon, even if they are profitable.
Of course they could have specifically addressed this already. It has been awhile since I read everything, so I may be wrong.
Yeah, they have. Public shareholders will get first profits as dividends until they get back 0.0035btc/share.
Quote
Investor Protection Plan
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
Yes public shareholders will get paid first, but when would they actually pay dividends? If they are successful, they will need the capital to grow. Couldn't they just retain all profits for growth?
As far as the payment of dividend is concerned:
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
To be honest, it almost seems like the dividends (that bitcoiners have come to expect with securities) were "thrown in" as an afterthought. For a start up of this nature, I would expect them to retain all profits for growth. Don't count on them paying dividends anytime soon, even if they are profitable.
Of course they could have specifically addressed this already. It has been awhile since I read everything, so I may be wrong.
Yeah, they have. Public shareholders will get first profits as dividends until they get back 0.0035btc/share.
Quote
Investor Protection Plan
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
The initial 9,600,000 shares of LMB Holdings have the privilege of getting all profits until a total of 0.0035 bitcoins per share has been paid. Following this initial period of protection, dividends will be divided equally amongst all public and private shareholders.
Too easy.
Ruby vs php
Both suck.Quote
Mac vs Windows
Both suck.Quote
Coke vs Pepsi
Both suck.Lol QFT!
I recently stopped drinking any soft-drink! The first days were rough, but it was worth it!
Also: Node.JS FTW!
As far as the payment of dividend is concerned:
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
To be honest, it almost seems like the dividends (that bitcoiners have come to expect with securities) were "thrown in" as an afterthought. For a start up of this nature, I would expect them to retain all profits for growth. Don't count on them paying dividends anytime soon, even if they are profitable.
Of course they could have specifically addressed this already. It has been awhile since I read everything, so I may be wrong.
As far as the payment of dividend is concerned:
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
Neo & Bee is a serious long term investment in the space (in my opinion - the most serious so far) and not a "fictitious scam" or a "monkey business" that we have been used to in the community.
The company is a registered UK corporation. According to UK company law, a company CANNOT pay dividends until it has accumulated profits. It is illegal to pay dividends whilst you have losses (for creditors' protection etc.).
If the company proceeds to pay a dividend before it has accumulated profits then (a) the company, (b) the directors and (c) the auditors will be in very serious legal troubles. I do not believe the management of LMB Holdings or the company's auditors (KPMG) would like to risk it!
Additionally, for a start-up business with such a huge potential, from the cash flow point of view it also makes a lot of sense to start paying dividends once the company starts making a profit.
On to the next question, why even use an RDBMS?
MongoDB Anyone?
MongoDB Anyone?
Haha. Ruby vs php, Mac vs Windows, cloud vs hardware, Coke vs Pepsi...bring it on.
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