Author [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] [EN] [ZH] [ES] [PT] [IT] [DE] [FR] [NL] [TR] [SR] [AR] [RU] Topic: Summary of Key Facts for Invictus Stakeholders  (Read 2023 times)

0 Members and 1 Guest are viewing this topic.

Offline Stan

  • Hero Member
  • *****
  • Posts: 2737
  • You need to think BIGGER, Pinky...
    • View Profile
    • Cryptonomex
  • BTS: Stan
Summary of Key Facts for Invictus Stakeholders
« on: June 05, 2014, 04:18:24 AM »

Summary of Key Facts for Invictus Stakeholders

During the past months, Invictus has been consulting with multiple law firms to determine the correct legal structure to meet the goals of the company.  Our lawyers have encountered regulatory hurdles that require changes to how we had originally intended to structure that company.  This includes both how Invictus shares can be offered to international investors and how Invictus can comply with emerging and unpredictable regulations associated with crypto-currencies and crypto-equities.

This has required extensive legal research by these law firms and taken much longer than one would ordinarily expect.

We are nearing completion of that work and will be releasing a detailed description of the resulting solution as soon as our lawyers have finished it.

In the mean time, I will state the requirements, principles and facts for which they have been asked to find that solution:

Key Requirements
  • Structure must be 100% compliant with all known regulations in the jurisdictions in which the company will operate.
  • All prior agreements and promises must be honored in a way that is equally good or better.
Relevant Facts
  • Since shortly after our founding, Mr. Li Xiaolai has held a subscription agreement that entitles him to buy 25% of our shares for a fixed price payable in increments spread out over the first year.
  • Mr. Li also acquired an additional 1% from Charles Hoskinson in a separate purchase.
  • This means that his total subscribed stake in Invictus is 26% of which he has completed payments on 21% as scheduled.
  • His final payment for the last 5% is on hold pending completion of a restructuring forced by discovery of certain applicable U.S. regulations.
  • His payments toward the original 21% have been held as notes until the regulatory requirements could be met that would allow us to issue the corresponding shares.
  • Because of U.S. restrictions on to whom the shares can be sold, we were forced to interrupt the share release process to restructure the company as necessary to keep our promises.
  • Hong Kong was selected as the place to rebuild the company so that all investors could receive their shares legally.
  • All shareholders are to be treated equally and none, including Mr. Li and the American stakeholders have received their share certificates yet, pending resolution of all legal issues.
  • American and Chinese Investors will own the Hong Kong company collectively which will in turn own 100% of the Virginia company plus other new assets to be announced.
  • So shareholders will jointly own all the value associated with the current company including its brand, its digital assets, its intellectual property and trademarks.
  • As part of this activity, a Hong Kong company holds all AGS donations in trust for the benefit of the community, not Invictus or its stakeholders, and accordingly these trust property will be maintained separate from Invictus' self-owned assets.
  • Invictus still owns significant other digital assets (BTC, PTS, AGS, XTS, etc.) that it has earned by competing in the markets and the PTS mining / AGS donation activities.
  • All investors of Invictus are to enjoy the full benefits of being a common stock holder in a Hong Kong company that
    • Owns multiple other companies optimized to compete in diverse regulatory environments.
    • Owns the original Virginia 3I company and all of its self-owned assets.
    • Enjoys the benefits of expert management of those assets
    • Owns a brand that is widely recognized as an industry leader - in fact, as the industry Founder.
    • Has the knowledge and ability to invest in the development of new crypto-assets and capture ownership in them for the shareholders.
    • Has the knowledge and ability and reputation to attract more partners and investors to accelerate the growth.
    • From time to time, the board of directors may decide to pay distributions from the accumulation of these assets.

  • The new Hong Kong company hopes to follow the traditional path of a start-up, attracting additional rounds of capital, vesting share option incentives to talents and perhaps going public when the time is right.
  • A share option pool of the new Hong Kong company has been established to reserve significant portion of shares for the key talents to join Invictus, which might dilute pro rata all the existing shareholding as per customary commercial practice.
  • Mr. Bo Shen is serving as CEO of the Hong Kong company and working behind the scenes to attract new leadership, talent, investors and partners.
  • Any stakeholder that is not satisfied with the results of this restructuring will be offered the option of a refund in lieu of receiving the shares they were promised.
All of the above are statements of fact believed to be true as understood and intended by Invictus leadership within the limits of our background as engineers, not lawyers.  They are what we have asked our legal team to achieve for the benefit of our stakeholders but remain subject to any unavoidable legal constraints.

A formal statement of how our intent is being implemented is being prepared by our legal team and will be released as soon as it is ready.
« Last Edit: June 30, 2014, 02:54:23 PM by Stan »
Anything said on these forums does not constitute an intent to create a legal obligation or contract of any kind.   These are merely my opinions which I reserve the right to change at any time.

Offline onceuponatime

Re: Summary of Key Facts for Invictus Stakeholders
« Reply #1 on: June 05, 2014, 04:38:54 AM »
Thanks Stan. Looking forward to further details and/or prospectus.

Offline voldemort628

  • Full Member
  • ***
  • Posts: 117
    • View Profile
Re: Summary of Key Facts for Invictus Stakeholders
« Reply #2 on: June 05, 2014, 05:09:21 AM »
So does that mean we all have an equal chance to get a stake in I3 the company?

Offline Gentso1

Re: Summary of Key Facts for Invictus Stakeholders
« Reply #3 on: June 05, 2014, 01:13:03 PM »
What is the point in having a company in VA and one in Hong Kong?

Why couldn't Mr. Li Xiaolai just buy pts like the rest of us or buy btc and donate to ags?

When you say " Mr. Li Xiaolai has held a subscription agreement that entitles him to buy 25% of our shares for a fixed price", is he getting pts or is there another kind of "share" that you are selling? Also what is the price of said shares? If these shares aren't pts or ags can the rest of us buy some?

I understand the fact of having the company being based out of Hong Kong for regulations I don't understand the need for 2 separate companies, could you please explain?

Could you let us know the name of the Hong Kong company that is holding the AGS donations?

Thanks for taking the time to answer some questions. I am just trying to understand what you guys have going on and you ultimate goals.


Offline Stan

  • Hero Member
  • *****
  • Posts: 2737
  • You need to think BIGGER, Pinky...
    • View Profile
    • Cryptonomex
  • BTS: Stan
Re: Summary of Key Facts for Invictus Stakeholders
« Reply #4 on: June 05, 2014, 01:36:57 PM »
What is the point in having a company in VA and one in Hong Kong?

Why couldn't Mr. Li Xiaolai just buy pts like the rest of us or buy btc and donate to ags?

When you say " Mr. Li Xiaolai has held a subscription agreement that entitles him to buy 25% of our shares for a fixed price", is he getting pts or is there another kind of "share" that you are selling? Also what is the price of said shares? If these shares aren't pts or ags can the rest of us buy some?

I understand the fact of having the company being based out of Hong Kong for regulations I don't understand the need for 2 separate companies, could you please explain?

Could you let us know the name of the Hong Kong company that is holding the AGS donations?

Thanks for taking the time to answer some questions. I am just trying to understand what you guys have going on and you ultimate goals.

You have to go way back in time - nearly one year ago - and realize that all that existed at the time Mr. Li invested was Dan's original white paper and the smile on Charles Hoskinson's face.  There was no PTS.  There was no AGS.  There was no Invictus.

Mr. Li took great risks to make all that possible!


We started out on the traditional route:  make a privately held company in your home jurisdiction (VA) and then grow it to attract investors that help you grow it to attract investors that help you grow it to attract investors ... until you are big enough to do all the paperwork required by regulators to go public.  Hopefully Hong Kong will make that route easier, but I'm still waiting for the lawyers to finalize how it all works.

Along the way we were learning but we didn't have a big budget to hire lawyers to figure out everything in advance.  So we had to start simple, make mistakes, and get to the point were we could consult some very high-power attorneys.  That's when we realized that to achieve Mr Li's goal of better benefiting the Chinese people we should have started in Hong Kong.

So what do you do with Invictus 1.0 after you've upgraded to Invictus 2.0?  The easiest way is to put one inside the other.  Then you have time to sort out what to do with the old asset.  It still has value, just like your first cottage still has value after you've moved uptown to a nicer place.  Invictus 1.0 is still useful for interfacing to the American labor force and businesses where you need to spend USD and comply with American regulations.

Invictus Innovations Incorporated, LTD in Hong Kong manages the BitShares Trust which holds all donations and publishes how they are used in public Google spreadsheets.



Anything said on these forums does not constitute an intent to create a legal obligation or contract of any kind.   These are merely my opinions which I reserve the right to change at any time.

Offline Gentso1

Re: Summary of Key Facts for Invictus Stakeholders
« Reply #5 on: June 05, 2014, 07:21:05 PM »
What is the point in having a company in VA and one in Hong Kong?

Why couldn't Mr. Li Xiaolai just buy pts like the rest of us or buy btc and donate to ags?

When you say " Mr. Li Xiaolai has held a subscription agreement that entitles him to buy 25% of our shares for a fixed price", is he getting pts or is there another kind of "share" that you are selling? Also what is the price of said shares? If these shares aren't pts or ags can the rest of us buy some?

I understand the fact of having the company being based out of Hong Kong for regulations I don't understand the need for 2 separate companies, could you please explain?

Could you let us know the name of the Hong Kong company that is holding the AGS donations?

Thanks for taking the time to answer some questions. I am just trying to understand what you guys have going on and you ultimate goals.

You have to go way back in time - nearly one year ago - and realize that all that existed at the time Mr. Li invested was Dan's original white paper and the smile on Charles Hoskinson's face.  There was no PTS.  There was no AGS.  There was no Invictus.

Mr. Li took great risks to make all that possible!


We started out on the traditional route:  make a privately held company in your home jurisdiction (VA) and then grow it to attract investors that help you grow it to attract investors that help you grow it to attract investors ... until you are big enough to do all the paperwork required by regulators to go public.  Hopefully Hong Kong will make that route easier, but I'm still waiting for the lawyers to finalize how it all works.

Along the way we were learning but we didn't have a big budget to hire lawyers to figure out everything in advance.  So we had to start simple, make mistakes, and get to the point were we could consult some very high-power attorneys.  That's when we realized that to achieve Mr Li's goal of better benefiting the Chinese people we should have started in Hong Kong.

So what do you do with Invictus 1.0 after you've upgraded to Invictus 2.0?  The easiest way is to put one inside the other.  Then you have time to sort out what to do with the old asset.  It still has value, just like your first cottage still has value after you've moved uptown to a nicer place.  Invictus 1.0 is still useful for interfacing to the American labor force and businesses where you need to spend USD and comply with American regulations.

Invictus Innovations Incorporated, LTD in Hong Kong manages the BitShares Trust which holds all donations and publishes how they are used in public Google spreadsheets.

I believe I understand now. So the goal is to have one company based out of Hong Kong and Mr. Li is just the guy that got the ball rolling before there was anything. Thanks

Any chance you will let us know how sweet of a deal Mr. Li got? How much money did he have to put up?I mean it should be reported on some of those accounting spreadsheets, Correct?

When you say 25% of our shares at a fixed price what shares are you referring to and to what price? Is this shown on any of the accounting spreadsheets?


I am curious and just trying to wrap my head around everything you guys have going on. There seems to be alot of working parts to Invictus and I am just trying to get a better understanding.

The happy birthday BitShares was very well done. It was fun/educational and easy to read. the post really gave a nice outline and filled in some of the blanks of how these ideas were started, Thanks.

Offline johncitizen

  • Full Member
  • ***
  • Posts: 142
    • View Profile
Re: Summary of Key Facts for Invictus Stakeholders
« Reply #6 on: June 13, 2014, 06:32:41 AM »
This gives me great confidence as an Invictus stakeholder.

I can understand where we are headed. Legal was always my largest concern, no more.

On this note I will increase angelshares donations.

John

Offline liondani

Re: Summary of Key Facts for Invictus Stakeholders
« Reply #7 on: June 13, 2014, 10:49:40 AM »

  • A share option pool of the new Hong Kong company has been established to reserve significant portion of shares for the key talents to join Invictus, which might dilute pro rata all the existing shareholding as per customary commercial practice.


can you explain a little bit further the bold sentence?

  https://bitshares.OPENLEDGER.info/?r=GREECE  | You are in Control | BUY | SELL | SHORT | SWAP | LOAN | TRADE |  

Offline Stan

  • Hero Member
  • *****
  • Posts: 2737
  • You need to think BIGGER, Pinky...
    • View Profile
    • Cryptonomex
  • BTS: Stan
Re: Summary of Key Facts for Invictus Stakeholders
« Reply #8 on: June 13, 2014, 12:50:38 PM »

  • A share option pool of the new Hong Kong company has been established to reserve significant portion of shares for the key talents to join Invictus, which might dilute pro rata all the existing shareholding as per customary commercial practice.


can you explain a little bit further the bold sentence?

Most companies with ambitions of growing need to go through the process of attracting new talent and capital to help them grow and attract more talent and capital.  New talent and investors expect to obtain shares for their investment just like the original investors did.  So standard practice is to issue more shares for them which causes everybody to have a smaller percent of a bigger pie.  If successful, this increases the net worth of everybody's holdings.  Whether, when, and how to do such an expansion is a common decision that boards of directors have to face from time to time.

« Last Edit: June 13, 2014, 12:52:59 PM by Stan »
Anything said on these forums does not constitute an intent to create a legal obligation or contract of any kind.   These are merely my opinions which I reserve the right to change at any time.

Offline Gentso1

Re: Summary of Key Facts for Invictus Stakeholders
« Reply #9 on: June 16, 2014, 11:47:04 AM »

  • A share option pool of the new Hong Kong company has been established to reserve significant portion of shares for the key talents to join Invictus, which might dilute pro rata all the existing shareholding as per customary commercial practice.


can you explain a little bit further the bold sentence?

Most companies with ambitions of growing need to go through the process of attracting new talent and capital to help them grow and attract more talent and capital.  New talent and investors expect to obtain shares for their investment just like the original investors did.  So standard practice is to issue more shares for them which causes everybody to have a smaller percent of a bigger pie.  If successful, this increases the net worth of everybody's holdings.  Whether, when, and how to do such an expansion is a common decision that boards of directors have to face from time to time.

When you say "shares" do you mean pts or ags or are these completely different shares?

Or are these shares in  Invictus Innovations Incorporated, LTD?  Do the rest of us have the option of buying these types of shares?

Offline Stan

  • Hero Member
  • *****
  • Posts: 2737
  • You need to think BIGGER, Pinky...
    • View Profile
    • Cryptonomex
  • BTS: Stan
Re: Summary of Key Facts for Invictus Stakeholders
« Reply #10 on: June 16, 2014, 02:12:07 PM »

  • A share option pool of the new Hong Kong company has been established to reserve significant portion of shares for the key talents to join Invictus, which might dilute pro rata all the existing shareholding as per customary commercial practice.


can you explain a little bit further the bold sentence?

Most companies with ambitions of growing need to go through the process of attracting new talent and capital to help them grow and attract more talent and capital.  New talent and investors expect to obtain shares for their investment just like the original investors did.  So standard practice is to issue more shares for them which causes everybody to have a smaller percent of a bigger pie.  If successful, this increases the net worth of everybody's holdings.  Whether, when, and how to do such an expansion is a common decision that boards of directors have to face from time to time.

When you say "shares" do you mean pts or ags or are these completely different shares?

Or are these shares in  Invictus Innovations Incorporated, LTD?  Do the rest of us have the option of buying these types of shares?

In this context I was referring to shares of the human company that owns I3 LTD.  This is a privately held company subject to all the laws and regulations of Hong Kong.  Its shares have nothing to do with PTS or AGS.  Whether its shares are made available to the public in some future offering or not is for its board of directors to decide when the time is right.


Anything said on these forums does not constitute an intent to create a legal obligation or contract of any kind.   These are merely my opinions which I reserve the right to change at any time.

Offline eagleeye

  • Hero Member
  • *****
  • Posts: 931
    • View Profile
Re: Summary of Key Facts for Invictus Stakeholders
« Reply #11 on: September 02, 2014, 11:25:29 PM »

  • A share option pool of the new Hong Kong company has been established to reserve significant portion of shares for the key talents to join Invictus, which might dilute pro rata all the existing shareholding as per customary commercial practice.


can you explain a little bit further the bold sentence?

Most companies with ambitions of growing need to go through the process of attracting new talent and capital to help them grow and attract more talent and capital.  New talent and investors expect to obtain shares for their investment just like the original investors did.  So standard practice is to issue more shares for them which causes everybody to have a smaller percent of a bigger pie.  If successful, this increases the net worth of everybody's holdings.  Whether, when, and how to do such an expansion is a common decision that boards of directors have to face from time to time.

When you say "shares" do you mean pts or ags or are these completely different shares?

Or are these shares in  Invictus Innovations Incorporated, LTD?  Do the rest of us have the option of buying these types of shares?

He is referring to shares of the company that developed Bitshares, not the BitsharesX currency.  This may be obvious and if so I am sorry.

Offline eagleeye

  • Hero Member
  • *****
  • Posts: 931
    • View Profile
Re: Summary of Key Facts for Invictus Stakeholders
« Reply #12 on: September 02, 2014, 11:27:06 PM »
Summary of Key Facts for Invictus Stakeholders

During the past months, Invictus has been consulting with multiple law firms to determine the correct legal structure to meet the goals of the company.  Our lawyers have encountered regulatory hurdles that require changes to how we had originally intended to structure that company.  This includes both how Invictus shares can be offered to international investors and how Invictus can comply with emerging and unpredictable regulations associated with crypto-currencies and crypto-equities.

This has required extensive legal research by these law firms and taken much longer than one would ordinarily expect.

We are nearing completion of that work and will be releasing a detailed description of the resulting solution as soon as our lawyers have finished it.

In the mean time, I will state the requirements, principles and facts for which they have been asked to find that solution:

Key Requirements
  • Structure must be 100% compliant with all known regulations in the jurisdictions in which the company will operate.
  • All prior agreements and promises must be honored in a way that is equally good or better.
Relevant Facts
  • Since shortly after our founding, Mr. Li Xiaolai has held a subscription agreement that entitles him to buy 25% of our shares for a fixed price payable in increments spread out over the first year.
  • Mr. Li also acquired an additional 1% from Charles Hoskinson in a separate purchase.
  • This means that his total subscribed stake in Invictus is 26% of which he has completed payments on 21% as scheduled.
  • His final payment for the last 5% is on hold pending completion of a restructuring forced by discovery of certain applicable U.S. regulations.
  • His payments toward the original 21% have been held as notes until the regulatory requirements could be met that would allow us to issue the corresponding shares.
  • Because of U.S. restrictions on to whom the shares can be sold, we were forced to interrupt the share release process to restructure the company as necessary to keep our promises.
  • Hong Kong was selected as the place to rebuild the company so that all investors could receive their shares legally.
  • All shareholders are to be treated equally and none, including Mr. Li and the American stakeholders have received their share certificates yet, pending resolution of all legal issues.
  • American and Chinese Investors will own the Hong Kong company collectively which will in turn own 100% of the Virginia company plus other new assets to be announced.
  • So shareholders will jointly own all the value associated with the current company including its brand, its digital assets, its intellectual property and trademarks.
  • As part of this activity, a Hong Kong company holds all AGS donations in trust for the benefit of the community, not Invictus or its stakeholders, and accordingly these trust property will be maintained separate from Invictus' self-owned assets.
  • Invictus still owns significant other digital assets (BTC, PTS, AGS, XTS, etc.) that it has earned by competing in the markets and the PTS mining / AGS donation activities.
  • All investors of Invictus are to enjoy the full benefits of being a common stock holder in a Hong Kong company that
    • Owns multiple other companies optimized to compete in diverse regulatory environments.
    • Owns the original Virginia 3I company and all of its self-owned assets.
    • Enjoys the benefits of expert management of those assets
    • Owns a brand that is widely recognized as an industry leader - in fact, as the industry Founder.
    • Has the knowledge and ability to invest in the development of new crypto-assets and capture ownership in them for the shareholders.
    • Has the knowledge and ability and reputation to attract more partners and investors to accelerate the growth.
    • From time to time, the board of directors may decide to pay distributions from the accumulation of these assets.

  • The new Hong Kong company hopes to follow the traditional path of a start-up, attracting additional rounds of capital, vesting share option incentives to talents and perhaps going public when the time is right.
  • A share option pool of the new Hong Kong company has been established to reserve significant portion of shares for the key talents to join Invictus, which might dilute pro rata all the existing shareholding as per customary commercial practice.
  • Mr. Bo Shen is serving as CEO of the Hong Kong company and working behind the scenes to attract new leadership, talent, investors and partners.
  • Any stakeholder that is not satisfied with the results of this restructuring will be offered the option of a refund in lieu of receiving the shares they were promised.
All of the above are statements of fact believed to be true as understood and intended by Invictus leadership within the limits of our background as engineers, not lawyers.  They are what we have asked our legal team to achieve for the benefit of our stakeholders but remain subject to any unavoidable legal constraints.

A formal statement of how our intent is being implemented is being prepared by our legal team and will be released as soon as it is ready.

What would have regulators have done to the company.  It is not illegal to make technology.  Mr. Li has to however watch out in China, Mr. Li if you here me, tread carefully.  Develop the guanxi please.

 

Google+