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Miran Kathras
Interstellar Production League
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Posted - 2008.11.13 23:32:00 -
[1]
Business plan I am offering 40 billion ISK in bonds to finance the start of a large scale production business. These bonds will be issued through a Dutch auction, starting at 10% monthly interest (0.5% minimum bid increment), with a 6 month maturity date. The market for my intended products is, and has historically been, very stable. To mitigate the risk of individual product prices crashing I will be producing a wide array of the most profitable items at the time the materials are purchased. I have all the skills trained to produce all of the planned products with no lead time. I'm not revealing the items I will produce for security reasons.
Background I've been running a very profitable invention/t2 production business since april of 2007, but now I'm looking to diversify my operation. After careful study of the market I have discovered a field likely to yield stable profit at a minimum amount of work. Currently I have 120 PE5 build slots idling a large amount of the time, and while this plan appears very lucrative, it also requires a large initial investment for the materials needed.
The corporation already runs a private 22 billion ISK bond offering, which has paid on schedule for three months so far. As for me, I'm a four year veteran of eve with a large amount of characters and accounts to show for it, the reason for using this anonymous character and corporation is to protect the anonymity of my current operation as well as adding a layer of security to this offering.
I believe people should invest in this offering because it will see a reasonably quick return on your investment, with very low amounts of risk involved. I'm also personally looking to establish something of an MD reputation in case I get more grand ideas in the future.
Corporate Governance I'm the only person involved in my production corporation, and the shares of that corporation are spread three ways, one third belongs to me personally, and the other two thirds are split between the two investors of the previously mentioned private offering. One of these investors also holds a director seat in the corporation, to watch over the locked down BPO's that secure that offering. If necessary, more shares can be created and given to trusted third parties (Chribba, EBANK, etc). These people are people I have been friends with for many years and I have absolutely no reason to believe they will stage a coup or steal any assets.
Corporation assets Ca 1 billion ISK in ships, primarily a freighter. Ca 9 billion ISK in control towers, advanced laboratories and construction arrays. 12 billion ISK in locked down BPO's, which form a partial security for the previously mentioned private offering. Currently around 9,3 billion ISK in stock of materials, products and liquid ISK, though this varies a lot. Ca 1 billion ISK in other BPO's.
Liabilities Currently a total of 16.6 billion ISK plus interest is owed to the private investors, which will be paid back over the next 7 months.
Finances Over the past two months, the current production effort has expended 13 682 885 325,89 ISK, and has accrued a revenue of 38 257 021 368,45 ISK, for a 24 574 136 042,56 ISK profit. 7 777 462 364,33 ISK (approximately 3b of which is interest) has been paid back to the original investors out of their 21 400 000 000,00 ISK investment. This is a 16 796 673 678,23 profit for the corp, or 123% of the ISK expended. I thus have the capacity to pay the interest of this offering even if it results in zero profit or even a loss for some reason, though in the case of sustained loss the operation will most likely be liquidated.
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Miran Kathras
Interstellar Production League
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Posted - 2008.11.13 23:32:00 -
[2]
Edited by: Miran Kathras on 13/11/2008 23:35:45 Full Disclosure of Risks In-game risks: The single biggest risk involved is a freighter suicide, but even that risk is much lower now than it used to be, and I will try to never carry a suicide-worthy load in a single freighter run. The second risk is the production corp gettin wardecced, in which case I will move the freighter pilots to an NPC corp, arm the production towers suitably, and possibly hire mercenary protection out of my own pocket if I think it necessary. The risk of market collapse is virtually nonexistent.
RL Risks: There are no foreseeable risks to the operation from my RL. I do not have any budget problems (and my eve accounts are paid for entirely with gtc's anyways), I have never, and never will give out the passwords for any of my accounts to another human being. In the event of my disappearance or untimely demise, the corporation shareholders (which are all trusted entities) will be able to liquidate all corporate assets, which should more than cover the outstanding sums for both investment offerings.
Exit Strategy
In the extremely unlikely case of total market collapse, all liquid assets and blueprints related to the venture will be sold at the highest possible price.
Offering details Bonds will be represented in-game by shares of this corporation (ISPL), and interest payments will be distributed through the in-game dividend system. As payment for his auditing services, Kazuo Ishiguro has been given an option to buy 5 billion ISK worth of bonds at 7% interest (if the auction goes lower than that). This means the amount of actual corporation shares to be created can't be determined until the auction finishes, but for normal investors, one corporation share will be offered per bond (1m ISK). The bonds have a 6 month maturity date. The first interest payment will be made one month after the close of the auction, and the following interest payments every month after that. On the last month, the interest plus the initial investment will be paid out in full.
Additionally, some months I might be buying back a quantity of bonds. When this happens, the price and other information will be posted in a separate thread for each occasion, here on MD.
Auction details
The bonds will be sold by Dutch auction, where potential investors place bids and compete for the opportunity to invest by offering a lower interest rate. The starting interest rate is 10% monthly, and the minimum interest rate decrement is 0.5%. There is no restriction on the number or frequency of bids, nor the number of bonds. The auction will begin after the audit and my references have been posted, most likely within days, and will continue for 7 days after the separate auction thread is made. If they full 40b ISK sum isn't raised by this auction, I will (depending on the sum) either cancel the offering or go ahead at the smaller sum.
If you are unclear on the workings of a dutch auction, more information can be read here (http://en.wikipedia.org/wiki/Dutch_auction).
Please do not place bids in this thread, when bidding opens a separate thread will be made for that purpose. This thread is for the purposes of posting the audit, my character references, and questions and discussion about the offering.
Bonds offered 40 000
Price per bond 1 million ISK
Interest payment schedule Monthly
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Kazuo Ishiguro
House of Marbles Zzz
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Posted - 2008.11.13 23:32:00 -
[3]
Reserved --- Can't afford that BPO? Look here. 20:1 mineral compression The EVE f@h team |
hmmmzorred
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Posted - 2008.11.14 00:11:00 -
[4]
Posted - 2008.11.13 23:32:00 - [1] - Quote Posted - 2008.11.13 23:32:00 - [2] - Quote Posted - 2008.11.13 23:32:00 - [3] - Quote
Hmmmzor??
Edited by: Miran Kathras on 13/11/2008 23:53:33 +12 seconds Edited by: Kazuo Ishiguro on 13/11/2008 23:53:45
Hmmmzor??
Miran Kathras = Kazuo Ishiguro?
Hmmmzor....
Auditing own IPO?
Hmmmzorred.
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motomysz
Militek Industries Integrity Respect Selflessness
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Posted - 2008.11.14 00:20:00 -
[5]
Very interesting.
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cosmoray
Cosmoray Construction
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Posted - 2008.11.14 00:28:00 -
[6]
Two comments.
1. A faceless ALT can not raise 40B in an IPO without some major disclosure, even with a good auditor. 50% scam rate at over 10B with no rep!
2. This is a pretty massive accusation of one of the most trusted auditors in the game. For the sake of Kazuo's otherwise stellar reputation I recommend someone else do an audit (Shar hopefully) and prove that the accusation is indeed baseless.
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Kazuo Ishiguro
House of Marbles Zzz
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Posted - 2008.11.14 00:28:00 -
[7]
Edited by: Kazuo Ishiguro on 14/11/2008 00:31:21 Edited by: Kazuo Ishiguro on 14/11/2008 00:30:20
Originally by: hmmmzorred Auditing own IPO?
This has been quite a while in planning, and we wanted the thread to look neat. I will ask people to believe that I am not associated with the OP
To Cosmoray: the OP possesses plenty of more mature characters, which are known to me. Please wait until some of his friends have posted here. I think you'll be pleasantly surprised. --- Can't afford that BPO? Look here. 20:1 mineral compression The EVE f@h team |
cosmoray
Cosmoray Construction
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Posted - 2008.11.14 00:31:00 -
[8]
Originally by: Kazuo Ishiguro Edited by: Kazuo Ishiguro on 14/11/2008 00:30:20
Originally by: hmmmzorred Auditing own IPO?
This has been quite a while in planning, and we wanted the thread to look neat. I will ask people to believe that I am not associated with the OP
Needless to say, the OP possesses plenty of more mature characters, which are known to me.
Kaz let Shar take a look, not good to have mistrust out there.
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Miran Kathras
Interstellar Production League
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Posted - 2008.11.14 00:32:00 -
[9]
I was simply in a convo with Kazuo so we could make sure his post came up top.
I tried to get Shar Tegral to audit me as well, but unfortunately he wanted to charge a very large sum of money because of the many accounts and assets I have that he would have to audit. He knows the details of the business plan though and he still has all my valid, full API keys, it's up to him if he wants to say anything here.
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hmmmzorred
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Posted - 2008.11.14 00:39:00 -
[10]
Originally by: cosmoray Two comments.
1. A faceless ALT can not raise 40B in an IPO without some major disclosure, even with a good auditor. 50% scam rate at over 10B with no rep!
2. This is a pretty massive accusation of one of the most trusted auditors in the game. For the sake of Kazuo's otherwise stellar reputation I recommend someone else do an audit (Shar hopefully) and prove that the accusation is indeed baseless.
100% agree.
However. It new scam method. I explain. Person spend time building rep as auditor. Once person is accepted, auditer person audit many big IPO, many people invest if auditer say ok. Many new IPO audited are person own fake IPO but nobody check because everyone believe auditer. Soon many unhappy investor lose money.
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Ricdic
Caldari
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Posted - 2008.11.14 01:31:00 -
[11]
It's obvious the OP went to Kazuo before releasing his business plan which really is best practice.
My only concern is the following
Quote: I'm the only person involved in my production corporation, and the shares of that corporation are spread three ways, one third belongs to me personally, and the other two thirds are split between the two investors of the previously mentioned private offering
It's important we know who these two other people are
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Miran Kathras
Interstellar Production League
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Posted - 2008.11.14 01:37:00 -
[12]
Originally by: Ricdic It's important we know who these two other people are
They will post here on my behalf after they wake up/come online.
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Nyphur
Pillowsoft
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Posted - 2008.11.14 01:51:00 -
[13]
I had a chat with the main character of the OP about this business a while ago. I gave him some advice on launching and running an IPO and also some tips on aspects of his in-game business. The business idea is one I was investigating for an IPO before and I know that it's possibly to produce a minimum 5-10% monthly return with it. While I won't be investing and my post should certainly not be taken as an endorsement of this IPO, I can confirm that the business plan he proposed in chat with me does work.
If people are insistant on another auditor, I would give them it providing that the extra auditor fees aren't too high or if the buyer would agree to pay the fees on the provision that the audit turns out alright. There's no harm in it. Good luck with the IPO, my advice is to just answer questions as they come up and get some of those private investors to post in the thread. Anything you can do to help prove your credibility to the general EVE populace is going to get you more interest in the shares. Again, good luck with the IPO and don't burn out on it like I did on mine ^^;
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Majiir Paktu
Nabaal Construction and Industrials Corp
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Posted - 2008.11.14 02:51:00 -
[14]
I have had business experience with Miran Kathras (or rather, the real entity behind this name) multiple times in the past. I am not one of his two private investors, but I can confirm that, to my knowledge (which includes personally visiting those starbases he mentioned, and seeing API logs of his corp wallet), everything stated by the OP is true. I am currently in a sales contract with Miran which constitutes a large part of my current business operations, details of which can be found here. (I'm Packtu'sa; that account is disabled until I grab another GTC.)
I can confirm that he has spent a great deal of time planning this offering out and fleshing out his plans with others. I also know that he indeed spoke with Shar, because apparently Shar said I was "quite annoying" and that sounds about right.
Miran runs a one-man operation, and he is quite effective at running it solo. He became personally wealthy by investing a small amount into his own operation a while back and has grown it into an industrial empire. He has demonstrated to me that he has a solid understanding of the markets in which he is involved.
I know that I am not the most well-known MD character, but I hope that you all take this post for what it's worth. I personally trust Miran to be honest and competent enough that I feel safe associating my word with this offering. |
Serena Hennessy
Koshaku Ushra'Khan
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Posted - 2008.11.14 04:23:00 -
[15]
I have had dealings with Miran Kathras' primary character for the better part of three years. I have flown with him, traded with him, and have had several mutually profitable business ventures with him over the last two or so years.
As one of the abovementioned private investors in Miran Kathras' ongoing business ventures, I can confirm that his payments have been ontime, reliable, and of the expected ammounts. Furthermore, I can confirm that I personally hold one third of the shares currently issued for the production corporation in question. I am not the investor who currently holds a director seat in the corporation, however I am also aquainted with that individual and am confident enough in the security provided by his oversight that I simply don't see that I could offer any additional security by wasting one of my own alts on it.
Miran's business ventures, in addition to that which I helped finance, have without exeption been shrewd, well thought out, and carefully planned and executed. I have been updated often throughout the planning process for this venture, from its inception as an idea to make use of excess production capacity through to its current phase. In addition to my private holdings in one of his business ventures, we have trade in the many hundreds of millions between us on a regular and ongoing basis in an unrelated but similarly mutually profitable venture. Neither of these are the first such dealing, nor do I expect them to be the last.
I consider Miran to be extremely trustworthy, and hope that he will use this venture to build not only his wealth, but his reputation in the greater New Eden financial community, from which I am certain further mutually beneficial opportunities will arise long after my current dealings with him have expired.
While I currently have no plans to invest in this current offering (had I had any reasonable amount of isk to spare for the investment, it is likely it would have remained a private venture) I consider investments in Miran's operations of the highest confidence.
I therefore have no stake whatsoever in this endeavour, save wishing the utmost success to my associate in this new venture. My previous investment is currently secure and will continue to be profitable regardless of the success or failiure of this one, and I expect it will remain so until the bonds I hold have been paid out in full.
Miran, best of luck in the IPO. |
Trogdor Syphlis
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Posted - 2008.11.14 09:53:00 -
[16]
Was interested in this venture till I saw Serena was connected to the enterprise.
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Majiir Paktu
Nabaal Construction and Industrials Corp
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Posted - 2008.11.14 17:21:00 -
[17]
Originally by: Trogdor Syphlis
Was interested in this venture till I saw Serena was connected to the enterprise.
To my own knowledge, Serena is only connected as a financier and has no control over Miran's operation. Similarly, though I am involved in a contract with Miran, my own participation has no bearing on his own success. |
Shar Tegral
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Posted - 2008.11.14 17:55:00 -
[18]
Originally by: Miran Kathras I tried to get Shar Tegral to audit me as well, but unfortunately he wanted to charge a very large sum of money because of the many accounts and assets I have that he would have to audit. He knows the details of the business plan though and he still has all my valid, full API keys, it's up to him if he wants to say anything here.
I jested with the op about how much I should charge for all the work involved. Before I knew it, I was dismissed from the work I had started and the OP decided that Kazuo would be a better option. As such I barely started to do an audit. That being said, people who get fired should not offer negative or positive commentary. |
Serena Hennessy
Koshaku Ushra'Khan
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Posted - 2008.11.14 18:01:00 -
[19]
Originally by: Majiir Paktu
To my own knowledge, Serena is only connected as a financier and has no control over Miran's operation. Similarly, though I am involved in a contract with Miran, my own participation has no bearing on his own success.
This is correct.
As I mentioned, my own ventures are entirely private, and besides providing financing, I occasionally provide him product which is in no way connected to this enterprise as well. Even tasks such as oversight, as I mentioned, are handled by others. I am, however, kept apprised regularly and accurately of the condition of my investment both by the other private investor and by Miran.
Furthermore, as I mentioned, I will not be investing in this IPO, as I am heavily leveraged at the moment. Had I (and others) been able to invest any reasonable sum, I am certain Miran would have been able to procure private financing without requiring a public offering.
I believe that it says a great deal about the quality of Miran's ventures that people are willing to invest great sums of isk in them privately, as I have.
In the end, Miran's inability to procure fully private financing from myself and others for this particular project is my loss, and the public's gain. |
Kazuo Ishiguro
House of Marbles Zzz
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Posted - 2008.11.14 18:19:00 -
[20]
Originally by: Shar Tegral I jested with the op about how much I should charge for all the work involved. Before I knew it, I was dismissed from the work I had started and the OP decided that Kazuo would be a better option.
Unfortunately, that kind of mildly sarcastic humour tends not to carry very well in text. Commiserations. I'm curious to know what you would consider a reasonable charge for providing an audit in this instance (in your own fashion, of course). |
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Stins
Interstellar Starbase Syndicate Operations
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Posted - 2008.11.14 18:27:00 -
[21]
I'm the second investor in miran's private investment opportunity and hold a director position in his production corp. I can also confirm that I hold 33% of the shares issued by that corporation. The returns have so far been spot on time and ammount.
I've known miran's main for a few years now. He has a lot of knowledge on all aspects of the eve universe and everything he does, is very carefully planned and executed. He spends more then enough time ingame to make me feel confident that there will be no time-issues running both the private investment and this public offering. On several occasions I've transferred him up to 4-5 Bn isk in assets without collateral and they have allways returned without issues. The only reason I hold that director spot in his production corp is to make sure I can recover assets in case of a "hit-by-a-bus" scenario, not because I'm afraid of getting scammed out of my isk.
I know the details of his business idea and I believe it is very much possible to get a 10% profit with the business.
I will myself invest some isk in these bonds (altho I hate dutch auctions)
Stins, ISS Finance Director
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Shar Tegral
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Posted - 2008.11.14 18:49:00 -
[22]
Originally by: Kazuo Ishiguro I'm curious to know what you would consider a reasonable charge for providing an audit in this instance (in your own fashion, of course).
Whatever agreement myself and the audited adopted would have been fully disclosed when I made my audit report. Moot point now but I usually charge 25 - 100m per account in an audit. With this particular audit, 17 accounts/53 toons, I said, "Wow, I should charge 3 billion". The closest thing I got to a counter offer was "How about a volume discount?" I will admit that pricing seems very subjective but equally as much this is not exactly a commoditized industry either. Hard to adopt a McDonald's type of format here. Especially when one never really knows just how much work the audit really is going to require.
I have a new clone, her skill points are quite low but i forsee vast potential. Born at 05:56 18-Oct-08, weighing 7 lbs 12 oz, and was named Lara Florence. Mother & baby doing well - Dylythium |
Miran Kathras
Interstellar Production League
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Posted - 2008.11.14 20:39:00 -
[23]
Bidding is now open, here:
http://oldforums.eveonline.com/?a=topic&threadID=924331
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Kazzac Elentria
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Posted - 2008.11.16 04:32:00 -
[24]
Originally by: cosmoray
Originally by: Kazuo Ishiguro Edited by: Kazuo Ishiguro on 14/11/2008 00:30:20
Originally by: hmmmzorred Auditing own IPO?
This has been quite a while in planning, and we wanted the thread to look neat. I will ask people to believe that I am not associated with the OP
Needless to say, the OP possesses plenty of more mature characters, which are known to me.
Kaz let Shar take a look, not good to have mistrust out there.
If Shar is unavailable due to cost concerns I'd be more than willing to take a glancing look at the APIs and just cross verify some of the larger points in the audit.
I won't be investing however. Not because of any lack of faith, or skepticism. I just loathe dutch auctions. |
cosmoray
Cosmoray Construction
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Posted - 2008.11.16 14:33:00 -
[25]
I like the fact that the market is pricing your bond in the correct risk range: high.
Your current cost of around 9-10% looks good. I bet you were hoping ofr much lower!! |
Kazuo Ishiguro
House of Marbles Zzz
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Posted - 2008.11.16 16:09:00 -
[26]
I'd dispute that; from what I've seen, and on the strength of what previous investors have said, I think medium to low would be more appropriate. Do you really think that the first 2 days out of a 7-day auction give a good indication of what the final rate will be? --- Can't afford that BPO? Look here. 20:1 mineral compression The EVE f@h team |
Trogdor Syphlis
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Posted - 2008.11.16 17:00:00 -
[27]
Originally by: Kazuo Ishiguro I'd dispute that; from what I've seen, and on the strength of what previous investors have said, I think medium to low would be more appropriate. Do you really think that the first 2 days out of a 7-day auction give a good indication of what the final rate will be?
even 10% return is too high a risk for me, so yes I think the rate will be high.
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Miran Kathras
Interstellar Production League
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Posted - 2008.11.16 23:18:00 -
[28]
Originally by: cosmoray I like the fact that the market is pricing your bond in the correct risk range: high.
Your current cost of around 9-10% looks good. I bet you were hoping ofr much lower!!
In truth, it's an experiment, I wanted to see essentially how low people are willing to go, and how much "idle money" is out there.
I do think Kazuo asking for an option at 7% was a bit optimistic (though I do believe when he asked me that, I was considering starting at 8%).
If the auction doesn't cover it all, I will try putting the remainder up for sale as "normal" bonds at 10% anyways.
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