Monday, March 31, 2008

Buyback Details and New Shareholder List

I am providing the details of the Initial Buyback of shares, which took place on march 30, 2008 - 10 days after the delisting of DDE from the WSE, as well as the new shareholder list, effective today, April 1, 2008. The new fiscal year commences today as well, with the first dividend to be payed out by May 5th, and the 5th of every subsequent month. Details of dividend payments and updated shareholders lists will be available as we go along.

As I have mentioned before - the remaining shares will be subject to "mandatory buyback" over the coming months as per the schedule I have laid out:
1st Quarter: 2.50L per share
2nd Quarter: 2.75 per share
3rd Quarter: 3.00L per share
4th and subsequent Quarters: 3.25L per share.

As you will see - three investors assisted me in providing cash to complete the buyback of shares - Vitall Beck, Eliale Morigi, and logansan Oh - I am extremely grateful that these three stepped forward to make this all possible. The shares they have purchased as part of this buyback will be considered "reserve" shares - they will not be subject to a buyback until all other shares of DDE have been bought, and will be eligible to receive dividends.

The initial buyback was of 747,253 shares, and the total amount paid out was 1,955,676L. There are now 51 DDE shareholders.

If at any time, any shareholder wishes to cash out their holdings of DDE, I will strive to make this possible. Although I cannot guarantee that I will be able to fulfill the request, I am confident that in most cases, this will be possible.

Click here to see the details of the Initial Buyback

Click here to see the new shareholders list, as of April 1, 2008

Once again - thanks to all. Onward and upward!



sevenseals said...

Hello Del,

I know that January profit were reinvested in the company. But what about the February and March profits? Did you use it also for buyback?

Regards, Eric

Delicious Demar said...

Hey Eric,
thanks for the question.

February profits were used to expand land assets - I know that I said I did not want to expand DDE "much", but when Linden Research announced the new Opensapce sims, with double the prims, and the ability to purchase single sims instead of having to buy four at once, I recognized the opportunity that they presented, and purchased 5 Opensapce sims for rental.

They were all rented within 24 hours.

This expansion, though small, sonsumed the large part of February profits.

As for March, I will be doing the numbers this week - but yes, I used whatever cash I had available (most personal and some DDE) to buy back shares yesterday. I have enough now to cover my tier for three-four weeks, but beyond that, I have no cash reserves at all.

I will provide updated financial reports on my website as soon as I am able.


Anonymous said...

So how exactly is the mandatory buyback going to work? Will you be buying be spread equally across all investors? And will the first 5000 shares of each investor still be priced at 3L as they were for the individuals initially bought out, then dropping back to the quarterly price schedule?

Delicious Demar said...

Good idea actually...

Yes, the mandatory buyback will be spread across all investors every month, in proportion to the number of shares that they own.

I had not thought of making everyone's first 5,000 shares buyable at 3L per share - it was intended to be an incentive for shareholders to cash out now, and compensation to the shareholders with fewer than 5,000 shares, that were given no choice but to cash out...

The idea was to gradually increase the return on shares over time so that the whole thing could be completed in a year or so. In fact, all of the current shareholders will receive more than 3L per share overall with the current plan - including dividend payments and buybacks, I expect that each share should yield between 3.7 and 4L per share. If you bought your shares at the IPO price of 2.50 or 2.75, then that represents a yield of between 34% and 60% - plus any dividends that you have already collected in the past.

To me, this seems fair. But I I always open to suggestions - and I want to make sure that the vast majority of shareholders feel they are getting fair value.. So, keep em coming!



Saethan Zwiers said...

As you're doing the buybacks, will you be buying a fixed % from each holder, or a fixed #? It seems a percentage buyback would be fairest to all, but just curious. I personally wouldn't mind holding onto my measly 0.3% a while longer, but whatever is easiest for you, you're already offering a heck of a lot more than any other company that has delisted.

-Saethan Zwiers.

Saethan Zwiers said...

Ah, I suck for not reading completely, you already answered my question.. sorry!

-Saethan Zwiers