Market Discussions

Thank you for taking the time to read over my IPO request. This is my first time seeking investors so please be gentle :D

Chapter 1: Purpose of the IPO
Chapter 2: Background
Chapter 3: The Business Plan
Chapter 4: Statement of Assets
Chapter 5: Full Discloser of Risk
Chapter 6: Exit Strategy
Chapter 7: IPO Terms & Conditions


Chapter 1: Purpose of the IPO

To raise capital to increase production from 5 Assault Frigates and 20 Tactical Destroyers to 20 AFs or other T2 frigates and 40 T3Ds per day.


Chapter 2: Background

As some of you may know, I’m part of Rapid Withdrawal fighting alongside other Gallente Militia in the ever changing warzone that is Factional Warfare. But before I became part of FW I was an Explorer and an Industrialist before being War Dec’ed and the PvP bug biting me badly. However I have retained my industrial roots, first in producing the ships I needed and selling off what I didn’t use in the major trade hubs found throughout New Eden. Now that small venture has turning into a 5 billion ISK per month enterprise and I’m looking to expand. I have 3 accounts with all characters active, though I currently have my main, Eric, and 2 additional characters training at a time on the other 2 accounts. With the release of Skill Extractors and Injectors, I’ve been able to extract unused skill from Eric and redistribute them to all of my ALTs. The investment will allow me to train all characters to a sufficient level turning the corporation into a small enterprise.

Chapter 3: The Business Plan

My Business Plan is very simple as I already have the structure set up and running like clockwork. I currently manufacture 5 Enyos, 5 Confessors, 5 Hecates and 10 Svipuls per day and am looking to increase production to 10 Enyos and Ishkurs each and 10 each of the 4 Tactical Destroyers per day. I’m also able to manufacture most sub-capital ships though they don’t sell as fast as AFs and T3ds due to the release of the new Logistics Frigates. I also watch the market to see what other T2 ships will become popular and manufacture accordingly.

While production is my main focus I also buy LP from FW members at a ratio of 1000 ISK/LP when asked as most pilots don’t want to bother with the logistics of market trading, etc. I also have other plans of making additional ISK but as FW space is fluid I’m not quite ready to run with those at the moment.


Chapter 4: Statement of Assets

As of this posting AEGIS Logistics is sitting on a little over 12.7 billion in assets (which includes 1 active production tower and associated arrays, over 270 fully researched BPOs and accompanying BPCs, fuel, materials and ships), 2.9 billion in liquid cash, 1.4 billion currently in production and 1 billion in Sell Orders for a total of just over 18 billion.


Chapter 5: Full Discloser of Risk

I understand that I am not completely well known, that’s why I’m using my main, Eric de’Locke, to raise funds. I’ve been playing since July 2013, joining Rapid Withdrawal in March 2014 and then leaving to learn about Null Sec and Alliances and then to do some Incursions only to go back to RDRAW and FW.

The main risk is whether or not I’ll get tired of EVE and take an extended break. But then again, so could you! I don’t see this happening any time soon as I’m enjoying PvP and the logistics of FW fighting, as well as watching my little venture grow from supplying me with Enyos to fly to PLEXing 3 accounts and still having a few billion a month to play with.

Another risk is being War Dec’ed. While a possibility, it’s unlikely as my entire operation takes place in Low Sec with a 200+ strong FW corp to backup my small operation if needs be. In the case of a War Dec from High Sec gankers, I have other means of getting my products to market that will only eat away a small portion of profits. In the event that someone is bored enough to attack my tower, not all assets, BPOs and BPCs are kept there so production will only be hampered for a day or 2 at most.


Chapter 6: Exit Strategy

If things do not go as planned and the 4 Factions declare a state of peace I am prepared to shut down all production and liquidate all my assets in order to pay back the investors as best I can. Given that my only stumbling block is that I’m unable to keep up with production demand, I don’t see this Exit Strategy being employed but here it is.


Chapter 7: IPO Terms & Conditions

This is a 50 billion IPO for a 20% shareholding with 50% of all profits paid out as dividends on the last day of every month at around 17:00 hours EVE time. The other 50% will be carried over as running costs. Capital raised from the purchase of Shares will NOT count as income (profit) and will be placed within the Investment Capital Division’s Wallets to be used to fast track skills and purchase any additional assets as needed. Though it will affect the Net Asset Value (NAV) and therefore future share prices. A Projected Income Statement for 2016 with my current production rate and skill training plan can be viewed here.

Total Shares: 50 000 000.
Price/Share: 5 000 ISK
Shares Offered: 10 000 000 (20%)
Collateral: None
Share Issue Date: Tuesday, 1 March 2016
First Public Dividend Payout Date: Thursday, 31 March 2016
Reports: Monthly, accommodating payout. Though a daily account of all assets will be tracked via jEveAssets and can be requested by shareholders at any time.

In the event that you want to sell your shares, I will gladly buy them back in 6 months after the initial investment.

Share Buy Back Price after 6 Months: 5 250 ISK per Share
Share Buy Back Date: Thursday, 1 September 2016.

If shares are traded after the fact, please send me the details or post them here so I can update listings.

Would like pledge 20bn

No, I want 50B to Inject Skills so that I can produce a target of 81.5B of ships. The first few months will always be a little slow, but afterwards it will grow steadily.

This thread is going places!

When posting shares or bond offerings a bit of reading history and what goes on in this forum might be a good idea?

Good luck though!

Maybe. But I have to start somewhere. Once production becomes stable then profits grow and interest increases accordingly.

Yes I have plugged the numbers based on my current Skill training scheduled as per my projected income statement. Even if I get all skills to a required level within 1 day, I know it won't be viable until I'm able to accommodate those sills that's why there's a steady increase in production and not a big leap. That's also the reason I'm doing an IPO and not a Bond as I know the beginning will be slow but the potential is huge. At my current daily production I cannot keep up with demand so the market is there.

Sure, but it won't be for Eric as he's in FW and not part of any production. I can provide the API for my main indy ALT which includes 2 additional characters and you can see the transaction as they stand as well as an additional account with 3 toons. That ok?

Ok this a kind of Dragons Den thing

We have somebody with a NAV of 18b wants to sell 20% of his operation for 50b

What do you think the Dragons Den regulars response to this would be?

Probably the same responses they gave you in your offerings.

That is a good point too, I forgot about that in my previous post. It really is not a good idea to ask to barrow more than you have in assets, I do not include SP and toons assets myself. It does leave the issue open of if you lose all the invested isk what happens. It is not like you have enough assets to even say "I will liquidate everything to pay you back".

Also 50b is a large influx if isk - from 18b, I know at one time when I got an influx of a few billion I didn't know what to do with it all. It was a little overwhelming at the time. So yeah, another concern is: Can you handle such a large increase of capital and remain efficient? Seeing how you have never dealt with this much isk before it is kind of a shot in the dark of whether or not you will be successful or not.

My thoughts are there are too many risks for any sane investor with too low of an interest payment, that is not even guaranteed as it is a share of profits not a percent of investment. I would suggest scrapping the 50b and going for 5b or less ideally as 5b is pushing it for an unknown. The interest needs to be at or above 10% if you go for 5b or less. If you are determined to go for 50b, which is not a good idea in your case, the interest would need to be 15%+/ month, in my opinion, to reflect the risks for the investor. Or at the very least there needs to be a guaranteed payment amount and if thing go well you give them more, if profits are high enough.