Hi Munito,
first of all, it's great to see you back and interested in the exchange again.  I was always very impressed with the way you conducted business, and I don't hesitate to give you a personal and professional recommendation.   You were quite successful with PBA, and I have no doubt that you would conduct yourself with honor and integrity in your business.

I guess my question is simple.  If you can afford to pay Pradeep for his shares, why do you need cash?  It seems like just shifting money around if you pay Pradeep for his shares, and then take the cash from SLG to fund the business expansion.  Perhaps you are paying Pradeep in something other than cash?

I have also been impressed with Pradeep during his tenure with SLG, but I have noticed his enthusiasm slowing down over the last few months.

I would endorse you as the new CEO of SLG, with my 130,873 shares (held under this account and Delish Demina on behalf of VSIF)

dd

Hi Del and Pradeep,

o.....o   thank you for nice words!

I do not have even near that amount of cash. Although my main business is doing nice (kickers and slots) and commissions from Spinker and Fratch also add up nicely, it would take me a couple of months to get to the extra amount of cash like the one SLG is holding. That is.....if I do not invest anything in the meantime, until now, I invested around 100k in every of last three months (scripting fees, buying slots machines, financing grid-wide contests and buying some solo games). Those all payout now nicely, but still it would take me a long time to get to cash position which is comfortable for me to run an island just for solo games. To have an island just for solo games, I need to offer payins of at least 20,000L$ and if for example a player wins X10 on that payin its 200,000L$ just for 1 payout. So a lot of cash is mandatory on account.

However, my current businesses make me very comfortable in supporting a starting business, something like to be able to nurture it. Solo island would have costs of around 150kL$ a month, and for example if we end up 80kL$ up in a month, i can afford to add another 70L$k to break even for first couple of months without a problem.

So for me, it seems as the fastest way of expansion. If for example, Pradeep and I agree that I pay him 14% of NAV for his share of 14%, that would come up to some 128L$k investment for me to be able to manage around L$910k.

For shareholders, this might be a very good opportunity/gamble, because the cash in SLG will not be that much changed since our expenses would be buying of machines (around 300-350L$k) and in case we stop the island those machines can be sold, and the difference in money paid/received will be leveled by deleting my portion of shares in the amount of that difference so the NAV stays the same (if some extra ordinary circumstances do not occur). And by adding my own funds in case it doesnt become profitable immediately, I am also investing into something I believe is good business which should make up for the fact that at start I would only own 14% of the company. (In such cases, I will take a portion of options in accordance to NAV and money invested untill those are exosted, if needed afterwords it would be a gift)

For my work, possible expenses, and integration into already existing gaming place, I would however charge some managerial fee in addition to my share of dividends. We will discuss that in case the deal goes through, but it will be something like this: 25% of net income above L$30,000, or if we end up 90,000L$ in plus, it would be 60,000L$ accounted for managerial fee which would then come up to L$15,000.

Also, I think it will improve my current business also because by offering Full Entertainment at 1 place, players do not need to go to other place to play zyngo for example, and then come back to mine to play kickers or slots.

To Pradeep's post:
Yes, we discussed it a bit, but didnt not come to a conclusion of pricing etc. Also, I must note that I WILL NOT be able to offer other shareholders exit at NAV. However, I do plan to buy back shares at reasonable prices if money situation allows me that.

I hope I answered your questions with enough detail, if not please ask some more.

Munito Jacobus

Last edited by MunitoJacobus (2010-07-28 07:46:58)

Hi Alain,

Thnx for reply and your opinion.

Skill gaming is not banned in SL, and many of the games in SL are based on RL games of skill. When I say slots machines I refer to skill stop nudge games, but its easier to say slots machines, and they are a game of skill. So with regard to whether gaming might get banned in general, I dont think so, some games might get banned from time to time, but gaming industry will probably stay here. Its big part of entertainment.

Its very good to know where shareholders stand on this proposal, and I would appreciate if more shareholders said their opinions. So Alain thank you very much on giving yours.

Munito Jacobus

Last edited by MunitoJacobus (2010-07-28 16:16:28)

Ok. Good Pradeep. I hope we can continue with this company and grow it over time. Right now, all major decisions eventually come down to Dimi, so let's see and wait what he has to say.

P.S. We have some unfinished stuff Pradeep. I hope you take them on asap.

Hi Munito, i like it that somebody comes with new ideas, new challenges but dont like to give up a good compagny for it and i prefer to keep Pradeep as Ceo of SLG and run the compagny as he does now.
We can improve SLG for sure but that is not the topic here.
So i vote no for your plan to use SLG for it, but it isnt a bad plan.