What percentage of ownership does the 10,000,000 shares represent? Because 75% dividends on profits of only 30% ownership are much lower than if they were 75% of all operations at 100% ownership. Anybody know?
10m shares = 100% of the company. Only 7m shares were distributed in the IPO. The other 3m shares were deposited in the BTCT.co accounts of the founders, bringing the total to 10 million. They'll get their cuts through the dividend process, just like everyone else (Although I would assume they're also going to get paid a salary).
So i guess the 75% of profits, is from the 70% ownership? or from 100% ownership?
So for example say profit is $1,000 dollars for the whole 100% company. Will we get 75% of $1000 or 75% of $700 which is our share?
Just to clarify: The 10 million shares all give share holders rights to 100% of the profits. The reason for withholding 30% is purely as reinvestment fund for development and production. If labcoin paid 100% dividend from day 1 this could result in slower growth as they would be restricted to only invest the IPO capital.
Using 30% of initial income to accelerate sale, development, production and mining capability is a growth strategy and what sets Labcoin apart from a set-hash rate mining bond. If you want to make a comparison you can compare the business model of asicminer and a set-hash rate bond without reinvestment strategy.
The long term plan and intention is to use the reinvestment fund to over time increase dividend payments (profits) to surpass what shareholders would earn if 100% dividends would be paid out from day-1 as the team of course believes that Labcoin can invest at far greater profit in development, production, sales and mining power then individual investors.
Example: Say that Labcoin gets a volume chip order from a third party such as a large diy project or mining farm. it is possible that without reinvestment capital they would have to sell t low margins straight from foundry. Having access to capital to place the order and ship chips-in-hand could increase mark up SUBSTANTIALLY and thus create a much larger profit, and future dividend payments to share holders.
Food for thought, what margins do you think Asicminer had on the first batch USB miner at 2 BTC? Do you believe they could have charged anywhere near that if they would have sold them as pre-orders?
