Author Topic: Financial question/suggestion to HTC guys. (Read 285 times)

miko2d · « **on:** July 28, 1999, 11:41:00 AM »

Hi guys,

I just wanted to check if your financing is all settled or are you looking into additional sources.
If so, what conditions would you were looking for? Like loan (bond issue) or a completely non-voting stock (your creative independence being a priority).
You may be able to raise needed capital from the community at lower cost and with fewer hurdles then elsewhere - we know your reputation.
I am sure a few people would want to become a partners with you to the tune of a few hundred or couple of thousand bucks, even if non-voting, or just loan you the money at the current low 2-3% bank rate rather then double-digit junk bond rate.
The Mac guys (the rich guys that pay $2000+ for the power/functionality available in a $800 PC) might even finance a Mac programmer position for you. Loan to be repaid only from the profits from the future Mac accounts.
There is a lot of talk on AGW about corporations buying and dumbing down great ideas and how the only way to preserve them is to get involved ourselves. Quite a few would put their money where their mousth is, I hope. Based on demographic surveys from AGW, the average player is a professional in his 30s with some disposable income.
What would your conditions be (like minimum investment, etc).

HTC: I am sure you would need to consult with your lawyer/accountant first, but please give an indication whether it would even interest you.

Players: Plz, indicate if you would be willing to part with, say, $500 to reduce the financial pressure on the company we have so many hopes in.

miko--

Rolo · « **Reply #1 on:** July 30, 1999, 11:43:00 AM »

I doubt you'll see HTC up here making any sort of request for investment dollars. Such a posting would likely be seen as a public solicitation for the sale of securities running afoul of SEC and state securities regulations.

Start up captital is typically generated through private placements. As the term implies, there would be public statements requesting investors to join the private placement.

Also, because of regulatory and disclosure requirements, companies will often avoid taking investment dollars from parties that are not "accredited investors" under the SEC rules.

For individuals, an accredited investor is a natural person with a net worth of at least $1 million a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.

Rolo

Topcat · « **Reply #2 on:** July 31, 1999, 04:59:00 AM »

And what the heck is a 'natural person'?! Could you explain the different types of people, and how a 'natural' person is different?

------------------
Topcat
249 Squadron RAF "Gold Coast"
With Fists and Heels

Hat Trick · « **Reply #3 on:** July 31, 1999, 05:09:00 AM »

How about we all just send checks to HiTech and Pyro down in texas. Minimum of $100.00.

What does that get us, Well nothing.

But we may get a consideration for BETA Tester Status. And a nice letter saying...Hey...thanks for the beer and pizza money...and btw...here is a name number and address in which you can get in touch with Mr./Ms. XXXX in order to arrange some investment options.

Hell...who knows the legal issues.

I Just know this.

This Addiction...keep me out of bars...away from situation that could get me arrested, infected, killed. It keeps me home most nights, and spending less money in the long run. It makes me happy, and keeps me entertained. And will probably do so for many many years to come. This OnLine WorldWar II Flying addiction is something I never expected. Ive never done something for so long based on so little and gotten so much out of it.

I would and Will pay my extra money if it will help to whoever can make this experience better. If it wont help...then ill give it to them anyway...just to have first dibs at playing with it.

------------------
Hat Trick
-htrk-
War Birds Beta Tester
Confirmed Kill Beta Tester
Air Warrior one month and hated it!
Aces Hi Wannabe Tester
HiTech Devotee

Rolo · « **Reply #4 on:** July 31, 1999, 08:19:00 AM »

Quote

And what the heck is a 'natural person'?! Could you explain the different types of people, and how a 'natural' person is different?

Hehe. I forgot to translate from Lawyer to English. Under the law a corporation is deemed to be a "person". Hence, a natural person is a human being as opposed to some other entity.

I should also note that private placements are not limited to "accredited investors." There are exceptions written into the rules that allow non-accredited investors to participate in private placements. My primary point was the "private" nature of private placements, which means you won't see anyone at HTC posting a message "Hey! Anybody want to buy some stock?" Investors in a private place have usually approached the company or have a pre-existing relationship with the company or the company's agent.

Rolo

Topcat · « **Reply #5 on:** July 31, 1999, 08:31:00 AM »

Thanks Rolo. It was doing my head in trying to think what it meant.

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Topcat
249 Squadron RAF "Gold Coast"
With Fists and Heels

-cman- · « **Reply #6 on:** July 31, 1999, 11:39:00 AM »

Hat Trick wrote:
* * *
This Addiction...keep me out of bars...away from situation that could get me arrested, infected, killed. It keeps me home most nights, and spending less money in the long run. It makes me happy, and keeps me entertained. And will probably do so for many many years to come. This OnLine WorldWar II Flying addiction is something I never expected. Ive never done something for so long based on so little and gotten so much out of it.

I would and Will pay my extra money if it will help to whoever can make this experience better. If it wont help...then ill give it to them anyway...just to have first dibs at playing with it.
* * *
I'm with you HT. I've been saying much the same thing in AGW for a year or so now. I doubt if most players in the WB/AH community (sorry to mention both in the same breath, but let's not kid ourselved here) share our level of commitment/addiction. But, I am willing to bet that enough do to take a stake in something as promising as AH.

The problem for Dale, Doug et. al. is two-fold. How to arrange something like this without loosing control of the company and their "vision" -- which they have stated is one of their overwhelming priorities. And two, how to do it in such a way that it soed not run afoul of legal restrictions.

I think something like this might work. Sell one-time membership fees. HTC could establish several fee levels such as Dweeb Member, Ace Member, etc. Each level of membership would confer certain benefits and goodies. In otherwords, it could run like a private country club or suchlike with permanent members and pay-as-you-play members.

This could raise some miminal-regulatory strings attached capital and also give those of us who are so inclined the gratification of getting in "on the ground floor" as it were. There could probably be no future financial benefits such as stock options, voting privelges etc. attached to these memberships or then we get back into regulatory hassles. It would simple give some bennies of beta, perhaps some goodies (hand-painted flight jackets for a $5,000 membership for example) and free flight time.

Rolo, would this be doable?

Anyway, it's just a thought experiment. Guys with Dale and Doug's track record in this industry probably don't have much trouble rounding up capital.

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-cman-
The Dweebs of Death
"Death before dishonor,
often just moments
before."

Rolo · « **Reply #7 on:** July 31, 1999, 12:25:00 PM »

If they were selling product (i.e. memberships) rather than pieces of the company (stock) or accepting loans (bonds), I don't see how that would run afoul of the securities laws.

However, I'm having enough trouble prying $$ from the Mrs. to upgrade my computer. I can' t imagine her response when I say, "It's only $5,000 and I get this really cool jacket." <G>

Rolo

Rolo

Hat Trick · « **Reply #8 on:** July 31, 1999, 12:44:00 PM »

Well Im thinking more like $500.00.

What would I want.

Special Recognition on the Bulletin Board.
aka Hat Trick "Founding Member Hitech Creations"

Id want 100 hours of Free Time to be used at my convienence...Especially in those tight months.

Id want to BETA Test..But others can BETA also with no $ sent in.

Id want a really Nice Golf Shirt with Aces High Logo and some acft shadow on it. All stitched up nicely.

Id want a "Heya bud...thanks for everything..can I buy you a drink and tell you lies to make you feel important" at the first convention for Doug or Dale.

I want to sit at a special table too!

Id want 2 helpings of dessert!

And lastly...and probably the most difficult to justify.......

Id want GunJam....low and slow...in a F4F.

Ayyyyyyeeeeeeeeeeeeeeee

Where do I send the Check.

------------------
Hat Trick
-htrk-
War Birds Beta Tester
Confirmed Kill Beta Tester
Air Warrior one month and hated it!
Aces Hi Wannabe Tester
HiTech Devotee

Horn · « **Reply #9 on:** July 31, 1999, 01:19:00 PM »

Quote

If they were selling product (i.e. memberships) rather than pieces of the company (stock) or accepting loans (bonds), I don't see how that would run afoul of the securities laws.

However, I'm having enough trouble prying $$ from the Mrs. to upgrade my computer. I can't imagine her response when I say, "It's only $5,000 and I get this really cool jacket."
<G>
Rolo

There's some pretty good ideas, fellers! The system works for golf--why not an equally addicting combat flight simulator? Provide guest pricing, club matches, handicaps(!), sponsorships....hmmm, a flight sim "Open?"--and with the correct pricing structure, it shouldn't cost members more than say, a new set of Ping irons....I like it!