Really well put Richard. I am going through this process at the moment and really appreciate the clarity that your words of wisdom present.
Cheers Mathew On Thu, Jun 17, 2010 at 4:04 PM, [email protected] <[email protected]>wrote: > Dear SBAer, > > I am the founder of Carbon Free Solutions Ltd (formally RHI Ltd) and I > originally wanted to use an American (NASDAQ) type pricing for my > shares. That is, minimum price USD 10.00 each with a only 500,000 > shares on issue. > > But as we are in Australia, so I was convinced to use 'penny > dreadful' pricing. > That is first round investors paid $0.01 per share. > Later investors, paid $0.05 and the latest round of investors are > paying $0.10. > > In a few month when (if) we will list on the ASX the mug punters > (retail investors) will pay $0.20 per share. > > I originally owned 93% of the shares with other held by directors, > friends and family. > > After the second round I owned 55% of the shares. > > With the current 3rd round, I will own about 28% of the company and if > the float occurs I will be down to under 20%. > > Unless I pay large amounts of money, I will be diluted to death. > > Of course, I can walk away from a company I have worked for years > without pay and have risked both my marriage and my wife's house for. > Even if the float occurs my share are held in escrow for 2 years where > I can not sell them even if I wanted. > > Bottom line is that growing companies need cash. If you can not > generate cash from retained earnings (sales) you need external > investors and they will demand a heavy price. > > Do not feel sorry for me as I may have succeeded. > (After the cheque(s) clears I will pay for a party or two) > > It is much better to own 5% of something worth $40 million than 100% > of something worth zero. > > Richard Hayes > > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. > > Guidelines on discussion: http://tr.im/ujKF > > No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm > > To post to this group, send email to > [email protected] > To unsubscribe from this group, send email to > [email protected]<silicon-beach-australia%[email protected]> > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en -- Regards, Mathew French -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Guidelines on discussion: http://tr.im/ujKF No lurkers! It is expected that you introduce yourself: http://tr.im/ujMm To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
