Announcing the upcoming public offering for LMB Holdings, which will take place in a coordinated release across multiple bitcoin securities exchanges. LMB Holdings seeks to raise capital to fund two complimentary new ventures: Neo and the Bee Payment Network.
The full prospectus can be found
here.
NEOBEE Offering Schedule The
XBOND Pre-IPVO Offering will open next week on
Tuesday, September 17th at 1PM EDT / 5PM UTC and end upon the start of the IPVO.
The official
IPVO will begin next week on
Friday, September 20th at 1PM EDT / 5PM UTC.Please do not send XBONDs for share exchange redemption before September 17th at 1PM EDT / 5PM UTC, or they will be sent back to you. Any bonds sent after the deadline, or after the XBOND offering is sold out, will be sent back as well. Please make sure to follow all instructions, including giving the account name of your BitFunder account via email. First come, first served. Please review the prospectus for additional details.
Next week's IPVO on Friday will go live on all 3 exchanges
(BitFunder, Havelock, BTCT) at pretty much the same time.
Neo offers Cypriot residents depository and financial services. Customers can open demand deposit, savings, business, and merchant accounts. Though all customer deposits are held in full reserve in Bitcoin, many customers will use Euro-pegged accounts, allowing them to interact with their money like they would with Euro deposits at any traditional bank. Accounts will also be available that offer full exposure to the Bitcoin price level. Regardless of which currency they bank in primarily, all customers can seamlessly deposit, withdraw, or transfer either Bitcoin or Euros. Neo simplifies Bitcoin usage, to enable simple, easy transfers without requiring understanding of the complex technology. Neo will comply with all applicable financial and banking laws and regulations. The Flagship Branch and second branch are both planned to open in February 2014.
Bee is a payment processing network using EMV chip and PIN technology. Bee offers lower transaction fees, faster settlement times, and higher security than competing payment processing services in Cyprus. Merchant funds received through the Bee network are deposited directly into a Neo business account.
Initial service offerings will target local Cypriot individuals and business customers. As these ventures grow, service offerings will expand to all European Union territories.
Neo is a depository institution offering many of the services provided by traditional banks, but with the additional benefits of Bitcoin integration and insulation from future EU Central Bank regulation. Initially, services will be offered to Cypriot banking customers only, though partnerships are currently being explored to expand services to all EU residents.
Neo will provide customers with access to Bitcoin functionality without requiring understanding of the technological complexities. Though deposits are held in full reserve in Bitcoin, customers can deposit Euros or Bitcoins in and seamlessly withdraw or transfer either currency out. Each customer receives an 8-digit account number, allowing them to request payments much more easily than with Bitcoin’s 34-character public address.
RevenueIncome will be derived from Neo customers in various ways depending upon the type of account.
Pegged accounts will derive income from the fluctuations in the market rate. Initially, we will be adding large amounts of liquidity to the open markets which will drive increases in BTCEUR price level. As these accounts are pegged to the Euro, profits resulting from increases in BTCEUR price on these customers’ deposits will be retained by Neo, and is expected to be our primary source of income in the short term. We are developing our own index to set the local price. The index will determine the price using long term averages, local demand, cost of coin acquisition and how much income can be derived from liquidating our own positions should the need arise.
We will have a small monthly charge on the pegged accounts dependent upon transaction volume, this will promote the use of the account for daily transactions.
For BTC-denominated accounts, Neo will benefit from the margins decided by our local index price at the time of deposit. Again this will be dependent upon multiple factors including market conditions and the cost of coin acquisition for ourselves.
Bee is a card payment network, that operates merchant accounts which credit business accounts held with Neo. Bee offers traditional debit card services offering higher security, lower merchant processing fees and faster settlement periods than JCC, the only significant competitor in Cypriot card payment processing.
RevenueInitially, all of Bee’s revenue will be from fees. The fee structure is to be determined, but transaction fees will be less than 1% without any additional transaction charges for having a merchant account.
Eventually POS systems will be another source of revenue. We will be providing the first one thousand POS terminals without a monthly charge to ensure that there are no barriers presented to the merchant account managers when obtaining the first merchants. Once more than one thousand merchants have signed up, we shall implement a €15.99 per month charge for the terminals, which is considerably less than the €35+ monthly charges set by existing payment gateway providers. Large corporations with large transaction volumes may receive a discount on the POS terminal rental fee on a case by case basis.
ComplianceThough Bitcoin is currently not classified as “money” by the European Central Bank, and is thus not subject to current banking and money transfer laws, Neo will take an aggressive strategy of over-compliance. From launch, Neo will operate in full compliance with all current regulations placed upon traditional banks, ensuring that any future policy changes will have minimal effects on bank operations. By adhering to these regulations, Neo will be able to register immediately upon policy changes.
The internal systems used for our payment gateways will be PCI-DSS compliant and all other software and hardware implementations will be designed to comply with FISC guidelines on computer systems for banking and related financial institutions. All banking services will feature multiple verification methods to ensure the level of risk is reduced to the absolute minimum for losses incurred through fraudulently accessed accounts.
Neo is also lobbying directly to the Cypriot Minister of Finance and Attorney General to create a fair and clear legal and taxation framework for Bitcoin businesses operating in Cyprus. As the Cypriot government is eager to promote domestic growth of innovative start-ups and attract foreign investment, preliminary lobbying efforts have been encouraging.
Marketing and Branding Strategy 
Below The Line Activities- Informative Events
- Newsletter
- Direct Mail
- Information Kiosk
- Airline Presence
- Guinness World Record Attempt
Above The Line Activities- Television Advertising Campaign
- Radio Advertising Campaign
- Press Campaign
- Online Campaign
- Outdoor Campaign
IPVO DetailsThe opening date and time of the IPVO shall be confirmed soon, as we are working to coordinate it's release as best as possible.
LMB Holdings Share StructurePublic investors will hold 9,600,000 LMB Holdings shares (60% of the profits), whilst LMB Subsidiaries Limited (UK) shall hold 6,400,000 shares (40% of the profits), for a total of 16,000,000 LMB Holdings virtual shares, which represent 100% of the global profits of the LMB Subsidiaries Limited (UK).
Investor Protection PlanThe 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.
Initial Public Virtual OfferingThe underlying asset shall be registered and traded on BitFunder, under the ticker NEOBEE.
TAT.NEOBEE shares will be also sold as depositary receipts in tandem on other exchanges where the asset has been granted approval by LMB Holdings. Shares will be made available to TAT Investments dynamically across all exchanges as the market demands during the IPVO. There are three phases of the IPVO:
Private Tranche - 1,100,000 Shares - Sold privately to Angel Investors
Pre-IPVO Offering - 500,000 Shares @ 0.0025 BTC each
(Pre-IPVO Offering, available only to XBOND holders, see next section)
Public Offering - 8,000,000 Shares @ 0.003 BTC each
XBOND Exchangable OfferingThrough partnership with LMB Holdings, TAT Investments has negotiated that the next round of shares be made exclusively to the holders of XBOND as a Pre-IPVO Offering. This offering will be made available for the 72 hours preceding the official IPVO (date to be determined). Any unsold shares from this round will be made available to existing private shareholders.
Pre-IPVO Redemption: Each XBOND unit may exchanged at the full face value, 0.001 bitcoins each, toward the purchase of shares of the underlying asset as released on BitFunder. XBOND holders will have first access to 500,000 shares at the price of 0.0025 bitcoins each. Shares will be allocated on a first come, first served basis according to the instructions below.
Pre-IPVO Redemption Rules & Instructions:To instigate a redemption exchange for Pre-IPVO this offering, simply transfer your bonds to the the XBOND issuer account within HavelockInvestments.com, Also, please send a corresponding email to
[email protected] confirming your desired Pre-IPVO purchase quantity desired, and your account name on the destination exchange.
- Pre-IPVO exchanges will be fulfilled in the order that the full transfer is received. If the Pre-IPVO-eligible share inventory is depleted, any remaining XBOND units will be pushed back to their owner. In this event, dividends earned in the interim will be returned with the XBOND units.
- Pre-IPVO purchases must be paid in full by redeeming XBOND units, and must be an EVEN NUMBER of shares. Bitcoins cannot be used to make up any differences.
- Once a share exchange request is received it is binding.
- Your order may be partially filled if the eligible inventory has been depleted.
- Pre-IPVO shares will provided 3 days after the IPVO opens on BitFunder.
Transfer of SharesShares of the underlying asset on BitFunder may be imported or exported into any TAT.NEOBEE passthrough, or the underlying asset on Bitfunder.
There is no minimum quantity for transfers, but any transfer order must pay a 1.0 Bitcoin service fee.
How to Transfer Shares:Simply push the amount of shares to the issuer account on the source exchange, then send an e-mail to
[email protected] noting your account name on the destination exchange you have chosen. Please use the same e-mail address you have registered with the source exchange for verification purposes.
After your shares and request have been received, TAT Investments will push your new shares to your account in approximately 24-48 hours.
NOTE: TAT Investments is not responsible for any lost value, arbitrage, or trading opportunities due to delays in processing transfer requests.
Dividend paymentsThe 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).
Voting RightsShareholders in LMB Holdings do not have explicit voting rights. Any questions or concerns will be answered within 24 hours through our own investor relations website.
Financial StatementsQuarterly financial statements will be published across all platforms where LMB Holdings shares are available to be purchased.
Forced BuyBackLMB Holdings cannot enforce the buyback of shares.
Future SharesNo 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).
DissolutionIn the event of insolvency, all assets shall be sold and all proceeds remaining after repaying creditors shall be divided evenly and paid to each public share. Depositors are not creditors, and LMB Subsidiaries Limited (UK) will not have access to any depositor funds in the event of dissolution. Deposits shall be recovered by the customer though the external legal representative.
The full prospectus can be found
here.
Updates to clear up misunderstandingsWe do not trade with our customers money, we sell them Bitcoin and provide a simple wallet service.
For pegged wallets, we shall add Bitcoin from our own reserves when the exchange rate falls and the reverse happens when the price rises.
We are proactively and with positive results so far, pitching Bitcoin to existing trading platforms to enable us to utilize options and futures trading in sufficient volume.
A "run" would only serve to reduce our liabilities and not be detrimental to the business.
To demonstrate the effects of an opening week crash using the figures from the April 2013 crash I have produced a spreadsheet which can be found here
http://www.lmb-holdings.com/opening_week_crash.ods this spreadsheet does not include any options and futures trading.
We will be offering time based wallets, which provide a percentage of any growth in the exchange rate to our customers in return for hoarding the Bitcoin for a set period of time. We do not trade or lend these Bitcoins.
We will be introducing many additional steams of revenue such as insurance, international remittance, I will
not provide misleading figures to investors and potential investors whilst these offerings are being developed, there are many contributing factors to such services and without signed and sealed contacts the income could be x or it could be y. These products will generate an income irrespective of the exchange rate.
We will be allowing people and businesses to open Neo wallets who do not reside in Cyprus, however this will not be available at the launch because we want to ensure that we don't create a back log of administration for our local customers. Our services will only be available to those within the EU.
