Confused about the New Share Structure?
21 May 2011
Is me2everyone.com about to commit the greatest heist of the century? Are we about to steal your hopes and dreams for the future? Have we really cut 90% of your future value in M2E by changing the Metoo conversion rate?
On Thursday we reported on the new M2E Holdings PLC company that has been launched to take me2everyone.com into the future. We also reported that the conversion ratio for anyone wanting registered shares in M2E Holdings PLC would be 10 Metoos = 1 share.
It seems that we made a really bad job of explaining just how much better this is going to be for members – considering the numbers of people who are VERY angry about losing thousands and thousands of shares. So we wanted to release this very simple example of what’s about to happen...
Meet Alex – one of our members.
Alex has 200,000 Metoos. So let’s look at what happens under the old system...
The conversion rate is
1 Metoo = 1 Share
Alex converts these Metoos into
200,000 shares of GBP £0.001 each
The company goes on to make a valuation of GBP £1bn in the years to come (kinda low for social networks)
At that time, under the old system, there would have been
18bn shares in issue
Simple math of GBP £1bn / 18bn shares = GBP £0.055 per share
So Alex’s shares are worth 200,000 shares x GBP £0.055 = GBP £11,111.00
That’s really good isn’t it? So when some members heard that the conversion ration had moved to 10:1 they were very unhappy – expecting their future values to be slash by 90%
OK so the system has changed. So let’s take a look at what happens under the new system...
Alex still has 200,000 Metoos but things are a little different now:
The conversion rate is
10 Metoos = 1 Share
Alex converts these Metoos into
20,000 shares of GBP £0.01 each
The company goes on to make a valuation of GBP £1bn in the years to come (still kinda low for social networks)
The maximum planned number of shares in issue will be 1.6bn
Simple math of GBP £1bn / 1.6bn shares = GBP £0.625 per share
So Alex’s shares are worth 20,000 shares x GBP £0.625 = GBP £12,500.00
Hmm... Using the same valuation we just increased the value of Alex’s shares by GBP £1,389.00 – and, you know, we just increased everyone’s future income from M2E share ownership by 12.5% - EVERYONE. That’s the kind of people we are!
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