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Caste Ling
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Posted - 2008.08.24 05:32:00 -
[1]
This is the preliminary discussion to a likely IPO by New Climacteric.
The following is a draft of the actual public offering:
New Climacteric IPO Plan
r Chapter 1 - Summary of New Climacteric
r Chapter 2 - Background on origins/idea/current business
r Chapter 3 - Corporate Governance
r Chapter 4 - The Business Plan
r Chapter 5 - Statement of Assets
r Chapter 6 - Full Disclosure of Risks
r Chapter 7 - Full Disclosure of Main and Alts
r Chapter 8 - Exit Strategy
r Chapter 9 - IPO Phases, Dividends, Market Cap
r Chapter 10 - FAQ
Chapter 1 - Summary of New Climacteric
New Climacteric will be a simple production business. I will buy materials as conveniently and affordably as I can, then I will use those materials to produce components which I will use in combination with more materials to create final products that will be sold for a steady, secure profit.
Chapter 2 - Background on origins/idea/current business
The idea for this plan first arose out of the realization that production can bring in a steady profit, albeit a lower one than many ventures, with very little risk. I discussed the idea on these forums recently and received good feedback (http://myeve.eve-online.com/ingameboard.asp?a=topic&threadID=844306).
I spent some time producing on a scale larger than a casual producer would be producing in anticipation of possibly having an IPO to support bigger production. This production, which involved an investment of about a fourth of what will be asked for in this IPO (and about four times what I had been routinely handling), resulted in a 36.04% profit over two weeks { which was right in line with my predictions.
Chapter 3 - Corporate Governance
New Climacteric is run by one person, no one besides me will have access to corporate funds and only one other real life person will even be a member of the corporation (a real life friend of mine { we play together). All decisions are made by me.
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Caste Ling
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Posted - 2008.08.24 05:33:00 -
[2]
Chapter 4 - The Business Plan
To predict my minimum profit I use spreadsheets that I have created myself over the course of a few weeks to suit exactly what I need them for. They factor in cost of minerals, hauling (volume in and out), brokers fees, sales tax, production slot costs (although it's so low { few thousand isk per week - it's not really relevant), as well as blue print copy costs in terms of T2 components (I have no T2 BPOs).
Primarily, New Climacteric will be building T1 Cruisers, and T2 Frigates. I will also mix in some T2 Cruiser production as well as the occasional misc item (be it T2 drone or T1 battleship) where I predict acceptable profit.
I make my profit margin predictions as if I were to buy all materials directly from the market, but I passively host buy orders in systems where I can beat the routine prices I get elsewhere. I also occasionally contract the solo miner for direct supplies. All secondary material acquisitions (buy orders/contracts) only serve to increase profit margin and I do not take place in them if market sell orders are more affordable (most often - Jita predicts material costs).
Since this is my first public offering and I want to guarantee the numbers I declare, I'm going to project a conservative 15%-30% return from the isk input into my production system, 9% of which I will be paying out at the end of the month to shareholders, with some high volume/lower cost production that involves considerably less T2 production than I would like to get at later.
If this plan is successful I expect to open up a slightly larger and more lengthy dividend payment scheme following the conclusion of this offering.
Chapter 5 - Statement of Assets
My current assets are the researched T1 BPOs needed to produce what I currently produce as well as all the component BPOs I need to produce any T2 products I desire (also researched). I also have some overstock of base materials needed to get production going at any moment.
Any of my other assets are not vital to the success of this plan so they will not be listed here (misc ships etc).
Chapter 6 - Full Disclosure of Risks
Because New Climacteric outsources it's hauling, no assets are ever outside of a station without being fully covered by a deposit, so there is no risk of a large amount of materials/products being lost to misc shipping errors. The biggest risk comes in the form of vast market fluctuations.
I say vast market fluctuations because the markets New Climacteric is involved in (primarily T1 and T2 ship production) are pretty steady, for there to be a great deviation from my predicted numbers there would likely have to be a change to actual game mechanics that leads to a great change in demand for materials/products or a larger group would have to move into my markets and undercut me everywhere using larger amounts of isk than I have access to, which would ultimately lead to them losing isk themselves to push me out of the market { a situation in which they deserve to take the market from me :).
I have multiple markets which I utilize to help avoid this situation, and I'm also always looking for private contracts that could only help the efficiency of moving isk.
I could also run away with your isk, a risk every IPO in Eve has, I offer you my reputation to chew up and I hope the relatively low investment requested will staunch the fear of this situation.
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Caste Ling
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Posted - 2008.08.24 05:34:00 -
[3]
Chapter 7 - Full Disclosure of Main and Alts
My main is Alba Tross and I use this character primarily for mission running / probing / all around character, in terms of this ipo this character is merely an extra character for me to run invention jobs on (fully invention capable).
My alts are the following:
Caste Ling (A character I use to monitor remote markets and post buy/sell orders)
Assum Bli (Primary production/research character, also CEO of Corp)
Photo Phobic (A character I have used to dabble in pvp with friendly corporations on the side, unrelated to this offering)
Chapter 8 - Exit Strategy
If I am pushed out of all my markets and unable to meet the projected profit margins by the time expected, the business will be declared a failure. I will liquidate available assets (since I cannot lose bulk materials/products because of the methods mentioned above, I cannot actually lose assets unless my accounts are hacked or something) and make up the declared payments to the shareholder(s) via secondary means (mission running if I have to, I enjoy a good mission now and then).
Chapter 9 - IPO Phases, Dividends, Market Cap
Total Number of Shares:
1,000
Shares Allocated for IPO:
500
Price Per Share:
2,000,000 isk
Schedule:
I will buy back the shares at the end of the month for their initial value plus 9.0%.
Projected Return per month:
9.0%
Projected Return per Share:
180,000 isk
Buyback of Shares:
Buyback at the end of the one month offering, shares will be purchased back for 2,180,000 isk per share.
Chapter 10 - FAQ
Q: How do I know this isn't a scam?
A: I can't tell you anything that would erase this idea completely, just a built-in risk with these offerings.
Q: How do I know I'll be successful?
Detailed planning (spreadsheets) and experience in smaller-scale endeavors.
Q: Why are you doing this?
Because I really enjoy the complexity of production in Eve and want to experience it on a larger scale (plus I really enjoy spreadsheets).
Q: Do I intend to have an audit done at some point?
In prior discussion about this plan other forum-members have been willing to invest simply off of the proof of skills shown on in-eve that I do have the skills to produce what I say I want to produce, and they offered to invest without an audit being necessary. I am keeping the offering small and the plan simple to help support skipping the audit process as it seems unnecessary for such a simple endeavor.
Q: What's my background?
I have played Eve since March of this year. I have played MMORPGs for nearly ten years now. I am four months from graduating with a BA.
Q: Will I ever pay over 5% dividends?
I will be paying a 9.0% return for the one month period of this offering.
Q: Will I buy back shares?
I plan on buying back shares at the end of the one month period of this offering for their total purchase value plus nine percent.
Q: What if someone declares war on New Climacteric?
No assets are ever out of stations with my production model, so unless there are vast changes made to game mechanics in the following weeks, war declarations will not interfere with business.
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Caste Ling
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Posted - 2008.08.24 05:36:00 -
[4]
<Reserved>
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Ricdics
Corporate Placement Holding
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Posted - 2008.08.24 06:58:00 -
[5]
Reserve 400m pending if i feel like investing or not. |
Synseer
Wreckless Abandon
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Posted - 2008.08.24 07:32:00 -
[6]
Ill reserve the remainder, 600m depending on whether ric invests 
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Treelox
Amarr
Market Jihadist Revolutionary Party
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Posted - 2008.08.24 08:18:00 -
[7]
Originally by: Synseer
Ill reserve the remainder, 600m depending on whether ric invests
The lemming effect in full force......
--
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MilowFV
Echo Heavy Industries
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Posted - 2008.08.24 10:48:00 -
[8]
I dont much care how Ricdics is feeling or not so I will offer to take 300 million with out any pre conditions. Just say who to send the ISk to.
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Caste Ling
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Posted - 2008.08.24 14:21:00 -
[9]
No critiques?
I will let the post sit at least for a little while longer, but since everything, pending Ricdics decision has been reserved, I will likely just open up the IPO soon.
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Ricdics
Corporate Placement Holding
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Posted - 2008.08.24 14:32:00 -
[10]
I will have to pull my reservation for many reasons including stomach cramps and the fact that I haven't yet read your post nor do I intend too. |
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Caste Ling
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Posted - 2008.08.24 14:35:00 -
[11]
Hope you get to feeling better.
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Nido Gentz
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Posted - 2008.08.24 14:49:00 -
[12]
I'll reserve 100 shares (200 million), not pending anything.
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Amarr Citizen 155
Alternative Methods Research Group
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Posted - 2008.08.24 15:35:00 -
[13]
I'd like to reserve zero shares pending Treelox saying my favorite number.
BTW, I like how you got around the audit.
Quote:
Ricdic (about starting ebank, July 2007): Think of it as a miniature EIB done right. I cannot see this getting anywhere near 700b any time in the future tbh.
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Absimi Liard
Gallente
Confederate Miners Union of Eve
space weaponry and trade
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Posted - 2008.08.24 15:43:00 -
[14]
Originally by: Amarr Citizen 155
I'd like to reserve zero shares pending Treelox saying my favorite number.
69 Dude!
Can I haz ur sharez?
-abs
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Ji Sama
Caldari
Carlsberg Intelligence Agency
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Posted - 2008.08.24 16:37:00 -
[15]
Reserving 100 shares of 200M ISK.
Let me know when to transfer the money...
"the majority of men has been dealt cards to a game they do not know how to play" |
Caste Ling
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Posted - 2008.08.24 17:30:00 -
[16]
Current reservations and directions have been listed in above post.
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Saint Lazarus
Spiorad ag fanaiocht
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Posted - 2008.08.24 18:16:00 -
[17]
I'll take the remaining (300mil) shares if they're still free
-----------------
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Ji Sama
Caldari
Carlsberg Intelligence Agency
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Posted - 2008.08.24 18:18:00 -
[18]
200M ISK transfered to Caste Ling
"the majority of men has been dealt cards to a game they do not know how to play" |
Nido Gentz
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Posted - 2008.08.24 18:31:00 -
[19]
Isk Sent...
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cosmoray
Cosmoray Construction
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Posted - 2008.08.24 20:17:00 -
[20]
I'll take the other 150 shares as discussed before, no audit required
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MilowFV
Echo Heavy Industries
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Posted - 2008.08.25 02:10:00 -
[21]
ISK sent
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Kazzac Elentria
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Posted - 2008.08.25 16:30:00 -
[22]
Damn, missed it this round... wanted to get in on it since the OP seems to have a decent head on their shoulders.
If things go well, and you plan on expansion I'll take 50% of the offering |
Ji Sama
Caldari
Department of Defence
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Posted - 2008.08.25 17:44:00 -
[23]
shares recieved...
"the majority of men has been dealt cards to a game they do not know how to play" |
Caste Ling
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Posted - 2008.08.25 19:45:00 -
[24]
Originally by: Kazzac Elentria
Damn, missed it this round... wanted to get in on it since the OP seems to have a decent head on their shoulders.
Thanks for the compliment 
All shares have been distributed and I have begun my work.
Thank you for your time.
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Nido Gentz
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Posted - 2008.09.22 23:30:00 -
[25]
Looks like this bond wrapped up a couple days ahead of schedule. Yesterday, I sent my shares back and received my initial principal plus one month interest. Thanks Caste for running a successful offering and best of luck in all future endeavors.
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Caste Ling
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Posted - 2008.09.23 00:06:00 -
[26]
Buybacks have begun, if you are a shareholder you should have received an EveMail about this.
A moderately detailed report will be posted as soon as I make it more visually appealing.
Thank you.
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MilowFV
Echo Heavy Industries
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Posted - 2008.09.23 01:53:00 -
[27]
nicely done shares returned and ISK received thank again.
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