Feb 9th 2012, 17:56 CAPX Capital Exchange
by Skip Oceanlane

CAPX SPO Ends In 12 Hours - Last Chance!

Dear Capital Exchange Members:

Please be advised that the Secondary Public Offering (SPO) of stock for Capital Exchange (CAPX) will end in about 12 hours. Here are the details:

Shares To SPO: 480,000
Price Per Share: L$8.15
Value Of SPO: L$3,912,000
Days For SPO: 5 Days

Amount sold so far: L$2,453,941
Amount remaining: L$1,458,059 (37.2%)

To buy SPO shares of CAPX, use this link:

http://slcapex.com/ipo

After the SPO is over, Capital Exchange (CAPX) will have a total of 2,000,000 shares. In the past I have been selling my personal shares of CAPX for between L$8.30-L$8.50, so I decided to drop the price a little bit for the SPO because of the 31.5% new share creation. I don't feel this will have much of an impact on dividends because it's still going to be my goal to pay a similar dividend per share that was paid in the past since I took over, which was about .065L per share. I should be able to surpass that per share dividend average for 2012, even with the 480,000 new shares.

Here is a summary of my CAPX SPO Application to the Capital Exchange Regulatory Commission (CERC):

Capital Exchange (CAPX) wishes to do a Secondary Public Offering (SPO) of stock of 480,000 shares. This would bring the total shares for CAPX up to 2,000,000. Let me explain why I wish to do this SPO.

As you know, our software is terribly outdated. It needs a major overhaul. I have come to a general agreement with a new programmer to start work shortly, as soon as Hamncheese Omlet can organize a few things for the new programmer to get started. I estimate the upgrade to cost thousands of US$, and I don't wish to finance it as a loan like I did in 2011 and slowly pay myself back. Instead, I would rather first give others the opportunity to invest in the upgrade which I feel will continue to keep Capital Exchange an extremely profitable venture for many years to come, and in 4-5 years if I choose to sell the software will be worth something and be unique. What other investors don't buy into, I'll finance the rest myself.

The roughly L$3,912,000 raised will go towards software and exchange promotion. I plan on keeping a very large reserve of Lindens for what is not spent right away. The software upgrades will be done over time - not in a matter of days or weeks. The idea is to spend the Lindens as wisely as possible.

The software upgrade will include many things. To list a few:

1) New integrated menus for stock brokers and brokerages. Menus will include advanced features such as selling short, margins, and other advanced trading features. Keeping track of customer accounts will be much easier too. It's my intention to make these things available only through licensed brokers and brokerages so they don't have to directly compete with the exchange for business, which is pretty much what they are doing right now.

2) New webpage layouts, a new look, and a more modern-looking trading experience.

3) Upgrade internal features for the exchange CEO to make his life easier :-)

4) Expanded charts, graphs, and ways to track investments, stock prices, historical information, and other trading tools for the investor. I want lots of information that will be searchable within time periods, and I want it to look good.

5) Tutorial Section for new traders.

6) Many other things traders requested in the forum thread for "Capital Exchange Suggestions."

Here is how I plan to conduct the SPO:

1) The SPO will last for only 5 days. At the start, I will buy enough shares so I have 50% plus 1 share. Everyone else will then have the ability to buy CAPX SPO shares for the next 5 days.

2) At the end of the 5 days, I will buy any remaining shares for myself, and sell them in the following months. If all the SPO shares are gone before then and purchased by others, then that's fine too. The bottom line is that the SPO is only lasting 5 days, period.

3) I will be paying the full 3.99% SPO Fee to the exchange.

Existing CAPX shareholders should not be too concerned of dilution of their shares. It's my goal to continue to pay between .05L and .10L dividend per month after the SPO is completed. Also, the SPO will bring in over L$150,000 in revenue to the exchange just on the SPO Fee alone - so who can complain about that.

So those are the full details of the Capital Exchange SPO. If anyone has questions, please feel free to ask me. Thanks and I hope you choose to purchase some CAPX SPO shares.

Skip Oceanlane
CEO and Majority Shareholder
Capital Exchange
www.slcapex.com