thanks very much for the thoughtful posts, as well as the IM conversations and notecards that you have all sent. I am truly humbled by your responses and the trust that you have shown.
So... Here's what I am concluding from what I have received and read:
1. No liquidation - nobody so far has suggested this and almost all have counseled against it.
2. All shareholders are to be treated fairly - whether they own 1 share or 400,000 - i.e. given the same opportunities. I am trying to do this, but I will have to reduce the number of small shareholders quickly in order to manager this.
3. There are a significant number of investors who want to stay invested, or even increase their stake in DDE. Many are willing to invest cash in order to buy out those that want to take money for their shares now.
4. There are some who want to cash out immediately, and I want to ensure they get the best deal possible in the current situation.
5. People like me. They really do. lmao
So, here is the new proposal, that takes all of your suggestions, and my own thoughts, and puts them together:
1. I will raise what cash I can without liquidating significantly (sell off mainland, perhaps one or two of the least profitable islands)
2. Once this is complete, I will seek investors that want to increase their stake in DDE. I am going to have a threshold of investment of 100,000L - this is the minimum amount for a "buy-in" to this process. In order to keep control of things - I will need all transactions to go through me - I don't want people making side deals. At this point, I do not have a good sense of how much capital will be needed for immediate share buy backs.
3. For anyone that owns fewer than 5000 shares, I am going to make a one-time payout of 3L per share for the shares you own. This is not optional. In order to be fair - I will offer a one-time pay-out of 3L per share for up to 5000 shares of any other shareholder that wants to take advantage of this. This will cost between 400,000L and 800,000L, and will reduce the number of shareholders to a maximum of 60.
4. Using the cash raised as per above, I will provide a one-time payout of 2.50L per share for all those that wish to cash out now, above the 5000 shares mentioned above.
5. After the initial buyout of those that want to sell their shares immediately - I will institute the following procedure:
A. I will collect a monthly salary of 250k Lindens.
B. All remaining profits will be distributed as dividends monthly. My expectation is that this will result in a monthly dividend of between 0.1L and 0.15L.
C. With my share of the dividends, and my salary, I will do a buy back of shares at rates on the following schedule:
- First quarter: 2.50L per share
- Second quarter: 2.75L per share
- Third quarter: 3.00L per share
- Fourth and subsequent quarters: 3.25 per share
D. As I have said a few times - I want to move toward obtaining full ownership of DDE with a view to eventually winding it down and getting out of the land business. It is looking more and more like this is going to have to be some time down the road - but I need you all to understand where that is going. Therefore, the buy back each month will be structured so that the full amount of my salary + dividends will be used to buy back shares. If I can get enough people that want to sell them voluntarily at the prevailing rate, then all is good. If not - I will buy back a equal proportion of everyone's shares at that rate until the cash is used up.
Under this model - people that need cash at any time can opt out at a fair price (remember that the liquidation value per share was 1.66L - and the going share price at the time of WSE closure was only 2.84). However, those that want to hold onto their shares could make a significant profit - shares sold after a year, at 3.25, will have likeley earned enough dividends that the total yield on them will approach 5L per share.
Now - this is all contingent on finding investors that want to increase their stake - those of you that have already indicated this to me will be contacted. anyone else that wants to "buy-in" should contact me as soon as possible.
It is also contingent on enough people wanting to sell immediately to make it worthwhile. To date I have messages from people indicating only about 350,000 shares that want to sell out immediately.
The advantage that I see in this plan is that it provides fair value all the way along. Smaller investors are provided with a premium price immediately (higher than either IPO or price or the last share price on WSE). Those that stay can opt-out any time - but the longer they stay, the more they make both in dividends and share price. As I reflected on things - I thought that is likely what would have happened if the company had remained on an exchange - a gradual increase in the share price over time, and decent dividends all the way along.
So I hope that this plan is a win-win for both investors and for me. Unfortunately - there is no reliable method for me to put this to a vote and know who is voting for what - (or to know that who is voting is who they say they are - lol) so I am going to have to ask major shareholders to either contact me inworld or to leave a message on the blog indicating their support or refusal of the plan. IF I get strong support for this, I will put it into motion.
PS: HERE IS THE LINK TO A LIST OF SHAREHOLDERS