Monday, May 01, 2017

End of (6 Month) Year

Back when I solicited for Project Vulcan Phase IV, I talked about the dividend payout plan:
Investment Details
My manufacturing Corporation, Ninveah Enterprises, will create and issue 4000 shares, 2000 which will be for sale to the public, 2000 owned by me.
The 2000 shares for sale to the public will be sold at a price of 15,000,000 ISK/unit which when all sold will represent 30,000,000,000 (30 billion) ISK investment.
The 2000 shares owned by me represent the current corporate holdings of blueprint originals, blueprint copies, current stocks of materials, and liquid ISK estimated at over 50 billion ISK.
Shares will receive a dividend payout approximately every 6 months (in early May not later than May 30 and early Nov not later than Nov 30) after an inventory audit is performed to calculate the current net worth of the corporation and the value is compared to the previous net worth. If the net worth has gone down, no dividend will be paid out. The first dividend payout is scheduled for May 2017.

Here we are in the beginning of May and its time to discuss the details.

Back in November, the holdings of the corporation were about 8 billion ISK, and I had raised 42.195 billion ISK for the Industrial Complex project. This week I'm going to do an audit the same way; calculate the value of assets and capital the corporation currently owns. This will be complicated by the builds in flight (1 cap, 3 structures) and assigning a value to them (probably the highest buy order on common markets) but shouldn't be too much of a problem.

Once the audit is complete, I'll designate an amount of the liquid reserves for a dividend payout. Dividends are like a reward for shareholders owning shares and are not intended to replace the value of owning shares. After the dividend payout is accounted for, I'll calculate the percentage increase in value of the corporation and increase the value of the shares. What this means is that if you choose to sell any of your shares back to the corporation, they will be bought back at a higher value than you purchased them for. 

For example, Shareholder Jim owns 10 shares purchased in November for 15 million each. The dividend payout is 1 million ISK per share so he receives 10 million ISK in his wallet. The shares increase 10% in value so if he chooses to sell the shares back to the corporation, he receives 16.5 million ISK per share, or 165 million ISK.

"Can you give me a guesstimate on how much I can expect?"

Well, the corp wallet has ~37 billion ISK in it, so at the low end I expect that the value of the corporation has increased 50%. Starting point I'm aiming for a 10 billion ISK payout on 4000 shares, or 2.5 million ISK per share, and at least a 25% increase in share value. But we'll see how the numbers shake out, and I will be open with the calculations and decisions and reasons behind them.

Ultimately I want to make sure we are poised well for the fall/winter and the upcoming refinery structures being released. I don't imagine we'll have enough ISK for the large refinery BPO which will be more than the Azbel and less than the Fortizar (so guessing around the 50 bil mark) but definitely want to hit the ground running on the medium refinery BPO and builds.

SO, on to the audit!


  1. If you have any more shares to sell are you going to offer them up on the new basis?

    1. There are currently no plans to create and/or sell more shares, but if any current shareholder sells them back, I will let people know I have some for sale.

  2. How do sales of shares back to the holding corp work? I'm not planning on selling, just trying to learn more about shares. Thanks!

    1. The game has few mechanics that allow easy movement of shares. I.e. they can't be put into contracts or sold on a market, so they basically have to work on a trust system. For my operation the shareholder indicates that they want to sell the shares back, giving me a 2 week window to raise capital / find new buyer. Then when I am ready, they send the shares back to me and I send the ISK to them. Awkward I know.

    2. That was the only way I could see to do it and thought I was missing something. Looks like this system could use a little love at some point. Thanks!