SV sells upto 4 Million shares to "hardcore player" in private offering

Slapshot1188 · May 2013

One day before they announce their Q1 results... a self described "hardcore player" just bought about 11% of their company stock in a private offering. (Update- Turns out there were 2 distinct buyers)

http://translate.google.com/translate?sl=sv&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&eotf=1&u=http%3A%2F%2Fwww.aktietorget.se%2FNewsItem.aspx%3FID_News%3D65744%26Language%3D2&act=url

FYI- After this sale henrick will own about 4% of the stock if my math is correct... (mostly Class A so he will still have about 25% of the votes)

Interesting...wonder what guild he runs with.

w4ffl3 · May 2013

Lol. A MO player has more say in what happens to MO than the CEO. "Give my friends preferential treatment"

deathshroud · May 2013

well im sure the game cant get any worse.

Mkilbride · May 2013

This is awesome.

Dreamo84 · May 2013

What a lousy investment.

SieniDieni · May 2013

oldmostaff · May 2013

A fool and his money will soon be parted.

kranick · May 2013

http://www.mortalonline.com/forums/threads/sv-mo-money-influx.88213/ no is hardcore player, is 2 inversors.

Slapshot1188 · May 2013

Originally posted by kranick
http://www.mortalonline.com/forums/threads/sv-mo-money-influx.88213/ no is hardcore player, is 2 inversors.

You mean the quote you linked (which is just a quote form the original link in the OP) where the investor says "I am a hardcore player" means he "no is hardcore player"...

Hmmm... I am having trouble following that logic.

waynejr2 · May 2013

The rumor is he set the stock purchase to negative 4 million shares...

Talonsin · May 2013

I cant really tell from the translation, did they dilute the stock even more by issuing additional shares?

Am I also reading this right that one million shares were sold for 23 cents each for almost a quarter million dollars?

I can understand someone being a hardcore fan but from a business perspective, the whole thing makes no sense. The game has lost money EVERY quarter, even after producing expansions and going f2p. Less than 3000 people in the entire world feel it is worth a sub fee. Who in their right mind would honestly think this is a good investment?

Slapshot1188 · May 2013

Originally posted by Talonsin
I cant really tell from the translation, did they dilute the stock even more by issuing additional shares?

Am I also reading this right that one million shares were sold for 23 cents each for almost a quarter million dollars?

I can understand someone being a hardcore fan but from a business perspective, the whole thing makes no sense. The game has lost money EVERY quarter, even after producing expansions and going f2p. Less than 3000 people in the entire world feel it is worth a sub fee. Who in their right mind would honestly think this is a good investment?

Not US cents. I believe it was valued around $150k US off the top of my head. (and yes they issued new stock)

I certainly think they are nuts, but at least the guy has SOME chance at actually getting a share of future profits if they ever should occur... no matter how unlikely. It's a better deal than tossing money as "donations". I'm just surprised that they publicly announced the names of the investors. I would think folks might want some privacy, especially if it's an active "hardcore player".

Of note... they also officially announced their next stockholder meeting and Henrick announced that they would table discussion of authorizing up to an additional 10M shares (roughly an additional 25%. Q1 results should be out in a few hours... it will be interesting to see if all the player donations were able to staunch the losses.

Icewhite · May 2013

Originally posted by Fendel84M
What a lousy investment.

Not necessarily.

Just have to exchange to proper form of currency.

Grunty · May 2013

Mel Brooks classic The Producers

http://www.youtube.com/watch?v=K08akOt2kuo

Stofftier · May 2013

Nice idea selling 4million of nothing.Why i was not coming on that :O

Slapshot1188 · May 2013

UPDATE: In today's quarterly report it was further clarified that there are two distinct investors (previously I read it as one offering to two people... for instance a married couple). So this means the 11% of stock is broken down between two people and the exact breakdown is not known at this time. At least one of them will be listed as a top owner so once it's registered we will be able to see the exact amount for each.

Rohn · May 2013

Some information posted today from SV:

"Dear community,

Exciting times are ahead for Mortal Online and its development.

We are very happy to have two investors into Star Vault who truly understand the game and our vision. This investment will be used for the direct development of Mortal Online; improving and polishing is still our main priority along with adding ”safe” content. With that I mean content which is already approved by code or that which requires bug fixing for the content. These investors have the same mindset towards our goal and vision on Mortal Online. They would not make this investment if we didn't stick to our vision of Mortal Online, keeping Mortal Online's core features and not committing to drastic game changes which effect players in a negative way. We will always try to bug test as much as we can on new features before they go live. We have lots of content, features and skills to come into the game from our old game design, so there may be need for ongoing tweaking when it comes to balancing the game-play to ensure that it follows our desired game design. We will now take a greater step forward and move faster in improving and building upon Mortal Online.

As the first affect of the increased development funds we are working directly with an old programmer, Fredrik, who has worked with us in the past. He knows our technology very well and is able to deliver very solid game code. We will continue to work with one of the most talented 3D artist in Sweden, Erik; he always performs with high quality at a very fast rate. We will continue to use our outsourcing team when needed.

The character armor system rework is going well. This system is up for testing on the 30th of May. We may need some polish during these steps although as soon as it is approved this will go live. You can see a screen shot of the Draconigena Armatus armor here.

We are also taking the first test sessions on the territory control core functions next week if things go as planned. During these sessions I may start share a few more details of this great system. It will bring content for all kind of players, from small groups to large guilds.

* New update:

Due to feedback and monitoring from large scale battles, we have been able to gather more info on what is giving issues when having lots of people in fights causing different issues. As explained before the nodes/server handle the population without any problems in fact the top loads we are peaking at large battles which we have monitored is going close to 15% load. We can in other words support a lot more players per node. What we have found during these events is that clients cannot handle the packages very well. Due to this we have worked out a very good solution. In short we are adding lods on packages as well similar to how we have lods on meshes. Currently on live when having 100 people on screen and around you seeing a player far away off that is 20 pixels on your monitor, he send as much packages as the guy you are fighting in front of you. Since our game rely on heavy detailed combat system unlike any other mmo it requires a lot of frequent packages. Our new system will cap this in two ways, both distance and by a number of players. This means we can find a suitable amount of players where we cap the data in terms of how important it is for a player to get the data. For instance you don't really need much data other than hp and movement/rotation on a 20 pixel character far away from you. This is actually going on test tonight, and we are very excited to follow the progress on this. This should make a huge difference when it comes to large scale fights. As soon as this is tested and approved this will go live hopefully sometime next week.

We are also doing a server network upgrade on Monday 27th, this will improve the network tiers our server is using today. This may affect a large amount of our players in a very positive way, since it will allow for fewer jumps before reaching our server, this is very dependent on what isp players are using. But overall this is an improvement to lower overall latency for players world wide."

http://www.mortalonline.com/forums/threads/star-vault-emission-and-latest-development-news-24-5.88246/

Toferio · May 2013

It really bugs me how he dresses up this whole thing into MO being coolest game ever and only few truly understanding it.

redcapp · May 2013

Gives new meaning to "p2w"

Maelkor · May 2013

He may simply have a couple of rich friends who dont mind losing $250k on something like this. The amount of money one spends on frivolities is relative to the overall wealth a person has. For instance if his two "investors" have a few million each stashed away with worry about future living - spending $250k on something like this might not be a big deal with the offchance that perhaps it might actually make some money somewhere down the road.

kakasaki · May 2013

Looks like P.T. Barnum has met his match...

Blindchance · May 2013

Daddy still helping along ?

Slapshot1188 · May 2013

From today's update (Q1 report) it is revealed that they also received a BRIDGE LOAN. Guess we now know why they needed this private offering...

I would add that the figure includes a bridge loan 394 000 SEK, which in turn is related to a private placement. - Henrick Nystrom

oldmostaff · May 2013

I'm not sure of the implementations of a bridge loan, what could one conclude from their statement about the bridge loan?

Burntvet · May 2013

This stock issue makes me think of the Simpsons episode where Homer goes and works for a DotCom and they had shares of the company stock on a toilet paper dispenser. By they end, they were pulling copper wire out of the walls. I expect no different in this case.

Burntvet · May 2013

Originally posted by oldmostaff

I'm not sure of the implementations of a bridge loan, what could one conclude from their statement about the bridge loan?

A bridge loan is a form of short-term financing a company sometimes takes, usually as part of restructuring or reorganization or other transition of business activity, while waiting for a cash infusion from selling an asset or getting new investors (as apparently happened here). It is meant to allow a company to continue operations after they have run out of "old money" and before the "new money" has come in (thus the "bridge"). Typically, bridge financing is not offered unless a bailout or cash infusion of some type is already in the works (or someone with deep pockets is underwriting the loan).

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SV sells upto 4 Million shares to "hardcore player" in private offering

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SV sells upto 4 Million shares to "hardcore player" in private offering

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