Apr 16th 2012, 00:06 APT Alpha Phoenix Trading
by Cash Yiyuan
APT Destroys 500,000 Treasury SharesThere has been much discussion with CapEx Management, CERC member's, investors and the general public regarding this topic. I hereby formally ask CapEx Management to destroy all treasury shares held by APT (500,000 shares). A private transaction took place moments ago to sell the excess 21432 shares at an agreed price.
This action needs to take place so that APT can move forward in the best interest of its investors, without a cloud handing above our heads.
Dear APT Shareholders:
I am going to approve the request from APT to destroy 500,000 "Treasury Shares" to settle the matter once and for all about these shares. Normally I would require a shareholders vote to do this (as I did with LLC), however this is a special circumstance with these shares. Let me explain.
When Cash Yiyuan wanted to transform the company into an investment fund, there was a question about who owned what shares, what shares were Treasury Shares, who owned certain assets, and so on. APT performed a Secondary Public Offering (SPO) to try and get all the shares in question on the market, however it was unsuccessful. Looking back I probably should have just made APT delete the shares unsold but I wanted Cash to try and sell them to raise additional Lindens as time went on. This created a "gray area" with these shares, allowing shares that were technically owned by the company to be listed as an asset and receive dividends, and be sold without an SPO.
A few people complained about the special circumstances of these shares, so I felt it was time to just settle the matter once and for all and delete them. APT will have now have 500,000 shares overall. If the company wishes to do an SPO, they can, however all unsold shares will be destroyed. I'll allow the SPO fee to be 1.99% instead of 3.99% for their first SPO, since technically they already have shares created and we're destroying them. Note that this is going to reduce the amount of assets recorded by the company because of the reduction of these special Treasury Shares being listed, but I felt I had given enough time for APT to get these shares on the market to raise the capital and it's time to get the stock into 100% conformity with all other listed companies stock composition.
The other complex issue is that now CEO Cash Yiyuan will only own 17.68% of APT shares. He will remain CEO until there is another shareholders vote for CEO, which will be determined by a majority of APT shareholders of course.
So to summarize:
1) I am destroying 500,000 shares of APT.
2) Cash Yiyuan will remain APT CEO until there is another vote.
3) APT may choose to do an SPO in the future like any other company listed. I will allow for the first SPO done to have a fee of only 1.99% instead of 3.99%.
Any questions, please feel free to ask. Thank you for your patience and understanding.
CEO and Majority Shareholder