I have had my doubts about their ability to honour our agreements from that time on,
CPA has openly admitted to being in a liquidity crunch, and other community members have pointed out the held assets will not cover current liabilities.
[CLOSED] [CPA] [BMF] [NYAN] Liquidity Loan Request
[GLBSE] CPA - No Dividends for the month of August, 2012
In the last little bit, much drama has surrounded Usagi and CPA, cumulating in a scammers accusations thread:
Usagi: falsifying NAVs, manipulating share prices and misleading investors.
I am not the type of person to walk away from a commitment, however at this time I think it would be best to stop payment on the CPA account until this is resolved.
I have raised a motion this afternoon asking the shareholders to approve the closure of the Shareholder Protection Fund held in trust with CPA.
A few days ago I reached out to Usagi about options on closing the account.
I will add that conversation bellow. Mods are welcome to confirm the messages are in my pms and appear here unedited (personal conversation removed, BAKEWELL stuff posted):
Hello Usagi,
In the time between founding BAKEWELL and creating the shareholder insurance fund with you, and now, the plan for BAKEWELL has dramatically changed.
BAKEWELL is a much smaller company than I initially thought I would launch with. We will continue to grow, but on a slow roll out basis.
At this time, the dividends from BAKEWELL will not cover the funds fee. As such I am not able to continue with it at this time.
I will be utilizing the small dividend I receive to aggressively grow BAKEWELL until the first half of the ipo is sold out.
I apologize for any inconvenience this causes you.
The fund currently has 4 BTC in it.
I would like to work out a refund of this from you, less a small management fee.
I would then like to restart this with a larger initial contribution and a payment plan based on dividend income once half of my ipo is cleared out.
Thank you,
Ian
In the time between founding BAKEWELL and creating the shareholder insurance fund with you, and now, the plan for BAKEWELL has dramatically changed.
BAKEWELL is a much smaller company than I initially thought I would launch with. We will continue to grow, but on a slow roll out basis.
At this time, the dividends from BAKEWELL will not cover the funds fee. As such I am not able to continue with it at this time.
I will be utilizing the small dividend I receive to aggressively grow BAKEWELL until the first half of the ipo is sold out.
I apologize for any inconvenience this causes you.
The fund currently has 4 BTC in it.
I would like to work out a refund of this from you, less a small management fee.
I would then like to restart this with a larger initial contribution and a payment plan based on dividend income once half of my ipo is cleared out.
Thank you,
Ian
Hi. Working out a refund is not possible because this is an agreement designed to protect your shareholders in case of a default on your end. These funds are held in trust on behalf of your shareholders. Second point (the obvious one) but bears bringing up, there is a non-cancellation clause.
The first problem here, on my end, is that whether or not you are experiencing financial difficulties, this is precisely what a scammer would try to do before he defaulted on his contract. He would try to get money such as this returned to him. That is precisely the reason why I cannot return it; this is a shareholder protection agreement.
The second problem is on your end. If you fail to pay your premium your contract will be voided and I must announce this publicly since your shareholders would no longer be covered.
If you feel the financial difficulties you are experiencing are temporary, I will agree to postponing payments for up to four weeks.
Yes, I know I could "just take back" what we signed and it would be easy for me to just absolve you of any liability and return the money. However if I did that I would not be doing my job. If your company is unable to meet the obligations in it's contract as a direct result of having to pay 1 btc per week, you have a problem.
Anyways, if you really really feel sour about this I suggest we discuss it openly with your shareholders. The best I can offer you is to have Nefario pay the money as a special dividend, as you wouldn't have met the trust concerns of no default over a 1 year period.
Good luck!
Usagi,
BAKEWELL is fine and sitting cash heavy right now. 110btc and $4k CAN. I will be purchasing the rigs this week. I can expect around 650mhash per 7970, looking at 4-6 of these cards to start, I can estimate my dividends. We are not big enough yet that my portion of earnings would cover the fund contribution.
We are equitable, with a small return and utilizing the 7970's as a stop gap until asic tech is available for delivery.
I am 737 shares into my second funding round. I will need to sell another 1763 shares before my contract allows for another equipment purchase anyhow.
I am aware of the contract clauses, particularly A4 and section D. A4 allowing you to accelerate your portion, and section D pertaining to the expiry date & offering repayment to myself or as a dividend to shareholders.
I understand this is a "scammer" move, asking for the refund. But in all reality, the 4btc against the 500+ I have raised to date, is les than 1%.
In the event I defaulted right now, I doubt many are going to care about their share of the 4btc.
If we are not able to move forward on this privately (and I understand the commitments and reputation you must maintain) then I would ask that we begin working on this option: "The best I can offer you is to have Nefario pay the money as a special dividend, as you wouldn't have met the trust concerns of no default over a 1 year period."
Thank you,
Ian
I changed my mind and decided to wait a few days more, see how things would play out over the next little bit. Maybe Usagi is all good and trolls are trolls.
I send them this:
Usagi,
Another idea:
Would you be willing to move the minimum contribution down from 1btc to 50% of my dividends (as pledged here)
I would be happy to continue on with CPA as we grow.
Ian
Another idea:
Would you be willing to move the minimum contribution down from 1btc to 50% of my dividends (as pledged here)
I would be happy to continue on with CPA as we grow.
Ian
Ok, I have confirmed that's ok here: https://bitcointalksearch.org/topic/scam-ipo-bakewell-finally-a-transparent-investment-that-will-grow-104489
Although if you do want the money back that's fine, I just want to see that your shareholders agree (motion).
As you may guess I've been busy as can be recently and I haven't had a chance to look at the new securities in greater depth, but glancing thru the thread I'm happy to see your shareholders are excited ^^ That's a good sign.
Ok so to recap, moving forward, we're lowering the minimum payment to 0.1/week (or 50% of div or whatever) -- the idea I think should be to show investors the fund is increasing every week by something. If it's a small amount thats probably fine, since you don't have your ASIC units yet.