Deep Blue Marine (DPBE)

[keda]

jrf, this is old news. I don't know when you talked to Wilf about this, but the limited partnership (LP) and 300% payback had been mentioned many months ago.

Now, Wilf's explanation of how the coins are divided between DPBE and the LPs is slightly different from yours, but let's use your 30%. According to Wilf, they are looking to sell 200 LPs at $10k apiece. If they sell them all, they will have $2 million in the bank. The will then "owe" the LPs a 300% return, or $6 million. If DPBE is giving them 70%, they will need to recover about $17 million worth of coins!

$17 million recovered means about $8.5 million to the DR and $8.5 million to DPBE. The LPs receive $6 million, which leaves DPBE with $2.5 million. Now, the LPs paid $2 million to DPBE upfront, so the net is the LPs are up $4 million and DPBE is up $4.5 million.

So, in reality, investors are getting about 25%, not 15, and certainly not 50.

If/When the LPs are paid off, DPBE retains the 50% of everything else.

The deal as posted by Wilf is actually a little better for shareholders. I think it amounts to a 60/40 split rather than 70/30. It also does not appear that the LPs have any claim to anything other than coins (silver cups, Mayan artifacts, etc....), nor do they have any share in proceeds should they land a TV contract.

So is it a good deal to give up $4 million of their first $8.5 million share? Well, it depends on if they can pay it back and how long it takes for them to do so, but it beats the heck out of them closing up shop which is where it seams they are headed otherwise. So overall I think it is a good deal for the shareholders. And of course you are right that shareholders should know about it, but again, your assertions that Wilf was not going to tell shareholders is false. That cat's been out of the bag for many months now.