Thanks for the response.
The "par value" currently set is arbitrary, but has the following meanings (for the $600,000 per share value):
* annual dividends must be paid based on the par value, so in this case, that's 1.25% for the first year, or $7,000, and 1.5% for all following years the shares are outstanding, which is $9,000. So, that is not 1.25% or 1.5% of company profits in a given year which may go up or down, but rather is a mandatory payment whether or not the company is profitable, and whether or not the virtual plots 'bought' by those shares are sold.
* since the sale price for that virtual plot was $1.8M, it is true that on paper that is a $1.2M 'profit,' but we don't know if the company immediately redeemed the
the underlying share, or will use the money for operations (which includes salaries, like Whitman's own). If it didn't redeem the share, it will have to pay dividends. If the company ends up spending all the money on operations, it won't have that juicy "profit" to redeem the share.
* all of the preferred shares are really promissory notes, and all of the plots Whitman bought must be sold in order to make good on them. If the market for those plots crashes, it won't matter that Whitman 'booked' their arbitrarily set retail values as income to the company; he'll have to 'unbook' those numbers; plus he'll be on the hook for the $600,000 for each, which will include obligatory dividends.
This whole business scenario is a pipe-dream. Maybe it will work out if enough rich people choose to live in the virtual world rather than the real world, but it looks to me (and others) that the market isn't really in love with this stock. Otherwise, it would be higher priced, right?
Oh - one more thing ... who "approved" the "Monopoly money" and booked it at $100M? Who are these "outside consultants" and what does their approval really mean, other than that apparently what Whitman is doing is legal? Penny stocks thrive on legally ripping investors off.
Crypto currency was "real" until suddenly it wasn't. Those who got in early made money, but like all pyramid schemes, those at the bottom of the pyramid got ripped off. Making money for a short time isn't proof that something is truly worth what it claims to be.
I've probably been in this stock longer than you (if you know what BTHR was). Whitman talks a big game, but doesn't deliver to long-term retail investors. Only pump-and-dumpers, flippers, and Reg A stock holders (who convert their shares) make money.
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