Forums > Virtual Groundworks > Topic: IPO Application - Virtual Groundworks (VGW)
|Dec 10th 2011, 16:37
|IPO Application - Virtual Groundworks (VGW)|
|Dear Capital Exchange Members:
I present to you the IPO Application for Virtual Groundworks (VGW). The application was submitted by CEO Tuvok Dingson, who has been in Second Life since 2006. Please take a moment to review the application, and feel free to comment in the newly created VGW Forum. The company seems to have proper valuation accordint to our rules, and according to the CEO is already profitable. Any questions, feel free to ask here or contact the CEO directly.
Please note that this application has not be approved yet. It is currently under review by the Capital Exchange Regulatory Commission (CERC). I will advise you of the applications' progress.
Best of luck to Virtual Groundworks (VGW)!
CEO and Majority Shareholder
VGW Virtual Groundworks
Supplies your virtual needs!
Status: Primary - Being considered by primary review staff
Supplies your virtual needs!
CEO's Real Life Name
CEO's Real Life Location
Directors, Company Officers
Tuvok Dingson, CEO
Draven Denver, General manager
Kacey Rossini, Estate Manager
Total Shares To Create
Shares To IPO
Cash On Hand
Name for Chairman's Letter
Tuvok, CEO of Virtual Groundworks
Dear Investor, I am pleased to Introduce myself. Inworld my name is Tuvok. I have been around in Second Life since 2006 and seen some amazing things happen in SL over the past few years. If you put your mind to it even the sky is not the limit in Second Life.
We have been starting renting out ever since in 2008 with my first 4'096 square parcel, slowly it grew slowly to a business with the usage of a 1/2 mainland SIM. After that we decided to move to a Private SIM and things took off from there. We have always invested every Linden Dollar back in our business and today I am proud to present you Virtual Groundworks. A company that basically holds 2 grouped Estates, spread over 5 SIMS and ready for a new expansion.
We thought it would be the right time, even in these uncertain times, to give you as an Investor the opportunity to participate in this new chapter of our adventure, or better: venture. What started as a hobby is now a serious Estate.
Rest assured: the last thing I would like to do is being another AV that runs away with hard earned money from Investors. As an Investor i am very well aware of how risks will be calculated. Land is a tricky business. Yes, however we are certain that if you read our proposal, you will find that this business opportunity is a great way to get a good Return on Investment with some extra built in safeguards for you as Investor.
We challenge you to read through our business plan, and join us to make great things happen with Virtual Groundworks. It will not be disappointing!
Tuvok Dingson, CEO
It might be an old story, but a small hobby is growing towards a serious Estate with an emerging community.
What started with one single 4,096 square meter parcel on the mainland continent, has grown to a 5 sim Estate, soon to grow to 6 sims and in the eminent future even 9!
With or without the Venture Capital we will push through this plan for expansion. However we would like you as an Investor to take part into this adventure.
We do operate in a tricky line of business.
Landlords come and go, much of our trust can be violated and the user base in Second Life is ever evolving. Nothing is certain. We managed to get this far and it has been a privellege!
The strength of our business can be described in 2 words.
Personal and Flexible.
We do not work with managers or staff. The board of directors operate the Estate. Every member dedicated to help every Resident personally. We do not just rent land, we try to provide a basic Virtual need in Second Life, a great user experience and a safe haven.
Yes we DO make house calls as we believe that being part of SL is more than running an Estate, its being a community.
We DO believe in personal contact and short lines and flexibilty towards our Residents. Where we can, we give our Residents more responsibility.
The sims are ALWAYS paid in full for a full month and the current Tier income is the buildup for next month sim payment. We also keep enough cash on the US Dollar account with SL as a buffer.
That means that if we see in a particular month a problem with one of our sims, we will act. We do not believe in holding on to dreams. If a sim is losing money and we cannot sustain it, we will act! In the worst case scenario we will then relocate Residents and shrink the business. Only this way we believe that we can survive in an ever emerging world so vast and changing as Second Life.
Use Of Capital
The extra capital will not be used for any other reason than expansion of the Estate. We are in need of another full prim sim.
There is also the plan on the drawing board to change two existing sims under our care to a full themed community that will need three extra sims as well.
Plans to start this up will be as soon as the holidays are over and demand on rentals in SL is up again.
- We will report when ever we make use of the Venture Capital.
- We will keep the raised money on deposit in the SLCapex until we actualy make the investment. We will then withdraw the money and convert the Linden Dollars to US dollars on the Lindex Exchange and those proceedings go directly to our US dollar balance. No Linden will be cashed out other than through dividend or a share buyback through the SLCapex.
Beneath you will find our financial Status as of the 1st of December.
Balance sheet as of 1st of December before listing
(all currency in Linden Dollars)
Cash And Cash Equivalents
- T&K Creations Cash $99.600
Short Term Investments
Prepaid Tier to Linden Lab $310.930
Loan Tenants and persons in Arrears $-
Total current Assets $410.530
Long Term Investments $-
Property Realty and equipment
- Sims Keauhou Estates , Foreverland $781.908 *
- Rezzers $1.750
- Security system, with hippo plugin $6.500
- Rental system, Hippo $1.095
- mail system (+ add on) $2.490
- Logo and web development, software $42.317
- Traffic Aid, Fishing Buoy $1.990
- Itan dance system ,various decoration, builds $48.000
- Tier system $4.990
Total equipment and Realty $891.040
Total Assets $1.301.570
Total Liabilities $-
Total Stockholder Equity
Personal investment Dingson $ 577.000
Profits retained, Keauhou Beach, Estates $ 724.570
TOTAL LIABILITIES & SHAREHOLDERS EQUITY $1.301.570
* investment in Realty involves one grandfathered SIM.
Profits have been retained since 2008 in case of depreciation and amortization of the investments in our SIMS as the grandfathered status is not transferable anymore and the used market in SIMS in a slump.
We believe honesty and transparency is what every Investor seeks. So Let us be absolute blunt:
The Net earnings at this point are around 40,000 Linden Dollars a month. We do have a few expenses, but we try to keep that to a minimum. This is based on a full Estate as it is now. Yes we have a luxury problem, but nothing is certain.
We do not have staff. We do not see staff added to our company very soon as we believe that a happy settled Resident will not constantly call or take our time. When parcels are vacated and new Residents arrive there is always extra work, but we do not believe that we have to pay half our Dividend to staff members. Why should we? We rather work for some result and happy to share an honest portion of the pie.
We have ALWAYS added every earning to our buffer, just in case the market would crash, income would drop and to save for expansions. We do believe that this tactic has worked for us over the past 3 years in business. However, as we like to draw external venture Capital, and a return on Investment is one of the conditions, we will have to take the risk of giving out a large portion of the income as Dividend.
Here is the deal:
We pay half the net earnings every month out as Dividend. Yes 1/2 of it. The other half will be used to fill the buffers with Linden Lab, as the Tier bill will go up by 1,180 US Dollars per month alone! So we need to add 300,000 Linden Dollars extra to our buffers to play on the safe side. We will play open book and keep the investor informed about this Dividend Policy.
We will like to present the potential investor the following gesture:
It is our goal to pay a dividend per month of at least 0.01 per share throughout 2012, but of course because of Linden Lab's policy we cannot guarantee it. That would be roughly a ROI of 10% annually based on the IPO price.
As soon as Virtual Groundworks has enough financial buffers, and pay out our full earnings, we can easily pay out 0.02 per share and that gives the Investor already a 20% ROI annually, based on the original IPO price. We only have to increase the buffers incremental and based on how much US dollars Tier we have to pay to Linden Lab.
In return we ask you to buy shares that are slight higher priced than the usual one Linden shares. The reason for that is that we do forecast more Return on Investment than our primary goal . The second reason is that we, if allowed on CapEx, will put a buy back program in place in case the business will collapse for what ever reason. We consider this IPO a great opportunity to get a high return on investment but with a limited risk.
Raising the buffers and saving capital for future expansions will only lead to more dividend per share.
You as an investor, institutional or just a micro trader, are therefore challenged to buy this stock while we set it in the market for a very good price.
If Linden Lab changes its policy towards private sim owners, changes its Tier pricing Plan or changes its business model Mainland Versus Private Sims we can be faced with a challenge. In case of Linden Lab pulling the "plug" we will have a serious problem, however with our financial buffer in place and if Linden Lab lets us have our prepayments back, we can start over some where else.
Last but not least!
I value my reputation! Therefore if allowed, we will place a buy back program to support the price of the shares and if for any reason the business will fold, I will buy back every share listed on the SLCapex for at least 1.00 Linden Dollar. Your investment will be safe. Period!
Who are the board of directors who will try to work an a good return on investment? here under you will find a short introduction of each member.
Tuvok Dingson, The Sims are managed by an experienced SL Resident who has just turned 5 years and takes the role of CEO. A retired builder in nature. Still sporadically taking custom builds and selling some old buildings. A guy loving Second Life and breathing it. Enjoying Second Life in all its beauty and its vast and various types of Residents. In real life a CFO of a mid-sized private company and stewart and treasurer for some private, rich, investors.
Kacey Rossini, The Estate manager has gone through the motions also and is very handy with the estate tools, keeping the lag low to all our Residents and always has a smart solution for small problems that might arise. In real life a shop manager and very good with people.
Draven Denver, Owner of the Prim-Pets business, breedable pet expert and well known in the Amaretto Community, In SL for a few years now. In real life an entepreneur and formal owner of various small real life ventures and still is. A real community man and has that magic to turn any sim in a jewell.
Like said before, reputation is everything, therefore we will communicate openly to the investors and encourage any Investor to discuss any matters on the forums. Constructive critics is always appreciated.
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|Dec 11th 2011, 04:57
|Re: IPO Application - Virtual Groundworks (VGW)|
|Thank you Skip, on behalf of our Company. We would also like to thank the board of Members in their decision to give us an opportunity to bring our Company to the Exchange!
At this point we already earn a decent profit and have already an existing Estate that started in 2008 and we are of the verge to expand, so there are some great things for us ahead! As an Investor, you will not invest in a startup of a company but you will only invest in the expansion of the Estate.
I am very pleased for the change to take our Company to the next phase in its development. Please have a look at our proposal and join us in this adventure.
If you have any questions, feel free to aks!
All the best,
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