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LegendaryActivity: 1106Merit: 1005 Re: [BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing September 23, 2013, 12:57:49 PM

Last edit: September 23, 2013, 09:08:20 PM by dexX7 #43 Notice from Kate on the Litecoin Forums:



Quote Dear All,



This turn of events is unexpected and I shall not lie: almost certainly pretty bad for most of our shareholders.



As Giles said, we are looking at options as to how to proceed. The options under consideration are (in no particular order):



a) Move to a friedcat-style direct share ownership scheme

b) Migrate to a different exchange such as crypto-trade or Havelock

c) Create a new exchange (can't go into details right now but this is a possibility)

d) Forcibly buy back all shares (at a rate decided by the major shareholders, ie. me, Giles and a couple of others)



However, I must forewarn you that I do not think it is going to be practical to give all shareholders the same levels of attention in this transition. I am committed to looking after our major shareholders (eg. those with >500 or perhaps >1,000 share) but it may not be practical to switch to a friedcat-like system of direct share ownership with the large numbers of shareholders we have, nor to migrate all of you to a new exchange.



I therefore encourage those of you with a small number of shares to take what you can over the next week to get some value from the shares you have (ie. sell them) to avoid potentially being left with nothing at all should we end up in a situation where we cannot look after you all.



To be blunt, this experience has resulted in me getting royally screwed (I have significant holdings in addition to CipherMine on these exchanges). I am angry that this has come to pass and am tempted to take steps to close the door, taking CipherMine in-house with a very small number of investors. In practice, it would be simplest for us to walk away at this point (and with the exchange closing one could deem our contract as coming to a natural end) but I am going to take at least some steps to make good.



Anyway, the above is just me sharing some early, probably emotional, thoughts. I will be discussing the matter with our major investors (both in CIPHERMINE and CIPHERMINE.B1 the BTC bond) in due course. Unfortunately I have other pressing matters to attend to for the next 48 hours so please excuse a lack of comms in the mean time.



Kate. The Mastercoin faucet | Redeem unspent multisig outputs

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LegendaryActivity: 1106Merit: 1005 Re: [BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing September 23, 2013, 01:34:36 PM #46 Quote from: evilscoop on September 23, 2013, 01:00:18 PM



I know kate is busy, but I am around a fair bit on both forums

bitfunder is one we are looking at...I know kate is busy, but I am around a fair bit on both forums

Thanks. Very appreciated!



I'm around for the next hours also. All potential transfers will be proceeded immediately. Trading is intended to be open till 2013-10-07 (the day BTCT halts trading), though I reserve to stop this pass-through earlier to convert all remaining shares to CIPHERMINE shares and sell them on the open market and distribute the proceeds as final dividend as described in the shareholder contract:



Quote 8. Dissolution



In the event that the operator chooses to or is forced to close this security for any reason, the

following methods will be used for dissolution:



1. A new operator may be chosen by the operator to take over this security. Shareholders of

CIPHERMINE-PT are eligible to approve/disapprove the new operator by a motion.



2. Shareholders of CIPHERMINE-PT have the right to exchange CIPHERMINE-PT shares for

CIPHERMINE shares on LTC-GLOBAL. If applicable, this right is granted for at least four weeks.



3. All remaining underlying shares of CIPHERMINE will be sold on LTC-GLOBAL and the

proceeds will be distributed to the remaining CIPHERMINE-PT shares as a final dividend. This

option is to be considered as unfavorable and only applicable, if the other two options yield no

sufficient result and no other solution has been determined by a consensus of the operator and

shareholders.

Should 8.3 be applied, a notification will be issued with a leadtime of at least 48 hours. Thanks. Very appreciated!I'm around for the next hours also. All potential transfers will be proceeded immediately. Trading is intended to be open till 2013-10-07 (the day BTCT halts trading), though I reserve to stop this pass-through earlier to convert all remaining shares to CIPHERMINE shares and sell them on the open market and distribute the proceeds as final dividend as described in the shareholder contract:Should 8.3 be applied, a notification will be issued with a leadtime of at least 48 hours. The Mastercoin faucet | Redeem unspent multisig outputs

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Hero MemberActivity: 602Merit: 500 Re: [BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing September 23, 2013, 04:37:40 PM #54 kate-

telling people to sell is just wrong. if you plan on closing everything down and leaving shareholders with NOTHING then wtf.

sell to WHO, you? who the hell would want to this stock that will be worth exactly 0 in a month.

your response seems to be filled with anger and hate.

keep in mind that anything short of either a fair buyback at 4ltc (your last round) is stealing.

i advice you to CALM down for a few days and then proceed to do something that is legal and fair.

ok

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LegendaryActivity: 1106Merit: 1005 Re: [BTC-TC] CIPHERMINE-PT - Industrial Mining & High Performance Computing September 23, 2013, 09:06:06 PM #58



Message from Kate to all shareholders, posted on Litecoin Global:



Quote Dear Shareholders,



Obviously today's news that LTC Global is closing down by the end of the month is very distressing.



We have not yet decided exactly what to do going forwards but are exploring a number of options, the most obvious of which is to simply bring all shares in-house and run them direct so you all continue to get dividend payments but to the public payment address you have set here (which does mean you must set it if you have not!).



If we were to do that it would prevent automated trading of the shares, and at this time we don't have the resources to administer trades manually. The security would therefore become illiquid for a time. We would likely therefore wish to move the security to a new exchange, and indeed we are exploring some options there too.



Another option is a forced buy-back of shares at the weighted average of the original issue prices (i-e. 1.62 LTC/share), but we don't have the necessary funds to do that in reality. Further, what funds we do have (mostly from the Avalon refund) I am more inclined to offer as a discounted, or possibly forced, buy-back of CIPHERMINE.B1 (the bond issued on BTC TC). At least 50% of the bondholders are investment funds who will likely want their money ASAP; I can't see how their funds can survive this unfortunately.



In the mean time please be assured that we are going to try to look after you, our shareholders, and that does include those of you with small stakes (my somewhat ill-considered forum post earlier should largely be ignored). CipherMine remains a viable business and will continue regardless.



I will be in touch in the couple of days with a clear plan. In the mean time, don't panic!



Kate. Looks like everything has calmed down a bit. The Mastercoin faucet | Redeem unspent multisig outputs