Today, we complete the purchase of Dark City: Obsidian City and Hostel bringing us to 6 sims total. Our growth has been slow but attainable. With the annoucement of the liquidation of KJL, I would like to take advantage of the price of the sims and purchase an additional 3-5 sims.
I have gotten the Registration API approval as of yesterday so building the Orientation Island is very close but we just need the island at this point. Another sim would be used as DCS battle arena similar to that seen on CSI:NY. The other 1-3 sims would be added to the Port continent as Port Seleste, Port Winter, and Port (something).
I propose that each sim would cost around $400k and 3 or 5 would suffice either way. I propose a secondary at $1.50 a share to cover the cost of the expansion which will speed up the RPG project from 3 months to possibly 1-2.
We have recently filled 2 of the 4 regular sims to capacity and the other 2 sims are over 50% capacity so we are looking to expand. Funds from the previous secondary were used to purchase and market the two RPG sims.
So now to the actual question....
Should LLRS do a secondary to expand and purchase assets from KJL?
Yes = Yes, do the secondary but the amount gained will determine the amount of sims purchased.
No = No
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12 comments:
GL with your secondary offering.
But I'm against and tried to vote against it.
But the system doesn't let me vote .
Every time I try to vote, it says "an error has occurred"
One reason I'm not for this proposal, is that you don't know how long it will take before your sold out. And in the mean time it's imposibble to trade in the shares
That is a concern of mine as well. This is something new WSE is doing with the halts during a secondary. Did you have other concerns?
P.S. I am not sure why the voting only works for certain people.
As posted on WSE:
One investor addressed an issue on my blog that I thought needed a little more thought and discussion. He stated that he would be against the secondary because there was not way to tell how long it would take the secondary to be filled.
As stated in the resolution, the amount filled on the secondary would determine how many sims would be purchased. With that being said, I would not let a secondary run any longer than 30 days. I feel that is sufficient time for the market to decide what their interest is in L&L Rentals and Sales. There would be no more than 1 million shares at $1.50/share and the amount of shares issued by the 30th day will be what is used towards the purchase of the sims.
In interim, we may look at alternate financing to secure the sims before hand as we realize KJL would like to liquidate as fast as possible. If for any reason we miss out on the purchase of those sims and do not find others for that price range, we will buy new sims from Linden Labs and refund any excess not used to shareholders in the form of a special dividend. I hope that this answers any questions you may have about the possible secondary.
What about the "old shareholders".After your announcement the shareprice dropped with appr. 30%.
The ppl. who buy from the secondary can buy-in now for
$L 1,50, that's a huge advantage for them, in comparison to the "old shareholders", who bought the shares after the IPO-offering, like I did.
I do understand that you need money to expand, but to increase the number of shares for that purpose with 44% is too much.
If you award the "old shareholders" for every share they own with a premium, in the form of a discount on each new share they purchase, the chance of success would be much better.
That's the way it works in RL.
I hear you Richy and I totally understand. I don't want anyone ousted here and that I why I asked questions and get feedback to not stir the pot too much. I actually do not expect the entire secondary to fill within 30 days which is why you see a 44% increase. Remember that the amount will determine what is purchased. I have no problem with compensation of current shareholders but I am not quite sure how I would be able to facilitate that through the system....hmmm....
Here is my thought...I have 1 or 2 ways to go here and anyone jump in and tell me what you think.
1. Maintain the offering as is at 1 million shares for $1.50L/share and offer 1/2 share for every share purchased by current shareholders at the halt from any shares not purchased in the secondary with priority given to the shareholder that purchased the most shares in the secondary.
2. Change the offering to 725000 at $2/share and offer 1/4 share for every share purchased by current shareholders at the halt from any shares not purchased in the secondary with priority given to the shareholder that purchased the most shares in the secondary.
Ideas??
heyyyy :-)
just back from a short trip with no puter access!! timing is everything...
I guess with the KJL liquidation, the pork chop has been thrown into the kennel..
For those of you that are having trouble voting - try using Firefox - i had problems with Explorer, but when i try with Firefox - it works fine..
HAHAHA Well I don't eat pork, D, so let's say.....ermmmm a bag of chocolate thrown into the ladies room.....
hahahaha, L, very good.
In terms of the secondary for LLRS, I think it's a great idea, and I wish you good luck with it. I would much rather keep it all in the WSE family than have the islands go cheap to anyone else. And, as you have pointed out before, there are more than enough avis in SL who need land (and land solutions), for all of us to benefit from Kejo's change in direction.
To all the investors out there - you should have realized by now that real estate is among the most stable businesses in SL - and the real estate companies that have been run well (like LLRS and HOT, for example) have been consistent winners on the WSE. By buying secondary shares of LLRS, you are supporting solid companies, and assuring yourselves the best chance of a good return.
It's a good idea with the free shares for the old shareholders and it's fair. I wish all companies would do that, after all the old shareholders are jointly responsible for the success of the companies. regards, eric
Thanks everyone for your comments and support. I believe I am going to put the two options to vote and see how that goes.
I think for the old shareholders it doesnt matter which of the two options you chose. But for the secondary sales i would say its better to offer at 1.50 because psychological it seams cheaper. Wouldn't spent more time with another voting.
In my opinion the secondary offer shouldn't take four weeks. Experienced long secondary offers takes more time to sell because people wait until the end of the offer and buy than (and me too). I suggest a period of two weeks.
I am thinking 2 weeks as well. I figure that what can't sell in two weeks probably won't sell but I will start the resolution just to get an idea of what the share holders want. I will probably make the decision before the end of the resolution but I want to guage a bit.
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