Cyberland Shifting Gears Already?

In a press release dated July 8th, 2005 Cyberland's CEO Shaun Altman had this to say:

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"Cyberland's initial public offering of 33,000 shares has concluded. All shares were purchased within roughly 2 hours of the IPO announcement. This will not be the end of Cyberland share offerings, however. Due to the need of this emerging market to gain momentum, we've decided to restrict our initial share offering to a fraction of the 1,000,000 shares that we intend to issue.

The remaining shares will be offered SLOWLY, to avoid shocking the market, and will be roughly tied to land inventory. Our plan is to offer new shares any time a land purchase results in a net increase to land inventory. That is to say, if we sold 2,000m2 of land on a given day, and bought 3,000m2, we would offer 1,000 new shares to raise additional capital for expansion."

<<End Quotation>>
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Well, its only a few days later and Cyberland has decided to offer the ENTIRE 1,000,000 shares at one time. This is going to severly undervalue to stock for the near term (it won't likely rise above the offering price of $9.15 since so many shares are being offered at that price).

Also, why the sudden decision to shift gears? Cyberland ALREADY has L$700,000 of cash in the coffers, what is the need to raise an additional L$8,088,600 by selling 884,000 MORE shares?

I'd appreciate a comment from the CEO, but you seasoned investors out there should probably be raising an eyebrow, as well.

Hi Jamie,

Sorry I haven't had time to get to this thread yet, it's been a pretty hectic day. I hope that my in-world IM was helpful and I'll try to give a more detailed response for anyone else who's interested.



This is in fact what I posted on July 8th. Essentially, you're quoting yesterday's news. The situation has changed since I posted the above and I'm reacting to it. I'll never let yesterday's situations get in the way of tomorrow for the company.



I decided to do a single secondary offering due to quite a few people wanting to purchase large amounts of shares. They were very frustrated about having to pay a high market rate due to an artificial scarcity of shares. This wasn't entirely anticipated on July 8th.

With this in mind, a single large offer seemed to make more sense. It allows the larger investors who are ready to roll right now to get in the door, and prevents values from being diluted time and time again by small block secondary offers.

It's not actually having a large effect on the market rate as blocks smaller than 100 shares are being traded at prices above the offer. As you can see if you've taken the time to read the press release detailing the structuring of the secondary offer, I've left myself a lot of room to make adjustments and fine tune it. It should be clear that the price is adjustable as are the alocated block sizes.

In time as more shares are sold, I'll begin pulling the 100 block orders, then the 500 block orders and so on. This should leave room for more active traders to break down larger offer blocks at market rate. Also on the other side of that coin will be that there will be more room to trade larger quantities of shares at market rate.

In summary, the actual market data conflicts with your theory, and everything is fine. If the situation changes again, I'll make another adjustment.

I wish that you would stop posting these "doom and gloom" threads. It's almost starting to look like you have an agenda. If you're not comfortable investing in Cyberland stock, please don't.



The need to raise as much capital as possible and convert it into land as quickly as intelligently possible should be clear. Currently our market share leaves a lot to be desired.



Seasoned? Weren't you also proclimating "doom and gloom" on a GOM thread which you initiated not even a week ago? I seem to recall this thread when the sell side dropped briefly to 3.8 due to a large cash-out. I think the thread was called "GOM PLUMMETING!" or something similar.



-Shaun

If memory serves, the charismatic leader was told by God that if he was unable to raise $8m then "the Lord was going to call him home" - which is either a euphemism for death or that God is going to refer to him by a misspelled, contracted form of the slang word "homeboy" meaning "A male friend or acquaintance from one's neighborhood or hometown".

Or was that Oral Robers? My memory isn't what it used to be