Crossgate Capital

[Sideshow Bob]

Number of shares from here:

CCL_Issuer_Profile_2021.pdf (usx.co.nz) 3.609m on issue

Company Registry - 3.65m Shareholdings (companiesoffice.govt.nz)

Looking at the documents, as at 31/3/21 they have 3.58m. Looks like new shares have been issued about 9 times since then - most of the time just a few thousand here or there.

Judging by the documents, since its inception, as shares have been sold, they have simply issued more.

Start of 2019, total shares were 3,000,000 to the 3 main shareholders/directors, and they still own the 3,000,000 - so would must been issued at XX cents each? Can't have been at $1 each (their stated value) as the company would had $3m in assets then, so wouldn't have had the growth that they state - ie assets now of $3.6m, and couldn't back the increase in share price.

As you mention TGT, large holding of BTC which is down heavily since the annual review - so hard to see how they quadrupled their net assets to justify the $3.99 valuation. Especially as don't seem to be trading. From their website:

The indicative long term portfolio weightings are provided below. To mitigate any unnecessary transaction fees or tax implications, we re-weight the portfolio through purchases as opposed to selling any of the cryptocurrencies.

Then as writing this post, I noticed another announcement! (Not yet on companies website)

DL9_Corportate_Actions_09.06.21.pdf (usx.co.nz)

So every new share appears to raise the net asset per share. Hard to sell how they value their shares, especially as just keep issuing more!!

Not sure what happens when they start to trade on the USX, no bids or offers so far. Will someone pay $3.99?? Or will they trade at a discount or premium!! Needs to be almost a daily or weekly NTA per share to be able to trade them.

Simply just not an investment for me (especially at $3.99) - just a morbid fascination on how structured and value themselves! And not clear to me.

[Tony Two Gloves]

Number of shares from here:

CCL_Issuer_Profile_2021.pdf (usx.co.nz) 3.609m on issue

Company Registry - 3.65m Shareholdings (companiesoffice.govt.nz)

Looking at the documents, as at 31/3/21 they have 3.58m. Looks like new shares have been issued about 9 times since then - most of the time just a few thousand here or there.

Judging by the documents, since its inception, as shares have been sold, they have simply issued more.

Start of 2019, total shares were 3,000,000 to the 3 main shareholders/directors, and they still own the 3,000,000 - so would must been issued at XX cents each? Can't have been at $1 each (their stated value) as the company would had $3m in assets then, so wouldn't have had the growth that they state - ie assets now of $3.6m, and couldn't back the increase in share price.

As you mention TGT, large holding of BTC which is down heavily since the annual review - so hard to see how they quadrupled their net assets to justify the $3.99 valuation. Especially as don't seem to be trading. From their website:

The indicative long term portfolio weightings are provided below. To mitigate any unnecessary transaction fees or tax implications, we re-weight the portfolio through purchases as opposed to selling any of the cryptocurrencies.


Then as writing this post, I noticed another announcement! (Not yet on companies website)

DL9_Corportate_Actions_09.06.21.pdf (usx.co.nz)

So every new share appears to raise the net asset per share. Hard to sell how they value their shares, especially as just keep issuing more!!

Not sure what happens when they start to trade on the USX, no bids or offers so far. Will someone pay $3.99?? Or will they trade at a discount or premium!! Needs to be almost a daily or weekly NTA per share to be able to trade them.

Simply just not an investment for me (especially at $3.99) - just a morbid fascination on how structured and value themselves! And not clear to me.

Not clear to me either! Feel it really needs to be easy to understand and it would be very easy to have a current value of their holdings on their website updated daily and from this a fair value of each share could be easily calculated. I to am interested in this but will not be buying shares as it is relatively simple to invest yourself with no ongoing fees and you get to keep the income from the coins if staked. I wonder if they knew about Catalist coming to the market as may have been easier and cheaper than USX.

[Sideshow Bob]

Not clear to me either! Feel it really needs to be easy to understand and it would be very easy to have a current value of their holdings on their website updated daily and from this a fair value of each share could be easily calculated. I to am interested in this but will not be buying shares as it is relatively simple to invest yourself with no ongoing fees and you get to keep the income from the coins if staked. I wonder if they knew about Catalist coming to the market as may have been easier and cheaper than USX.

Perhaps didn't know about Catalist.

But seemingly Catalist more regulated than Unlisted?? What are the benefits of a licensed stock exchange? (catalist.co.nz)

[percy]

Not clear to me either! Feel it really needs to be easy to understand and it would be very easy to have a current value of their holdings on their website updated daily and from this a fair value of each share could be easily calculated. I to am interested in this but will not be buying shares as it is relatively simple to invest yourself with no ongoing fees and you get to keep the income from the coins if staked. I wonder if they knew about Catalist coming to the market as may have been easier and cheaper than USX.

Beyond me.
Nothing seems to make any sense to me.
Totally off my radar now..

[Sideshow Bob]

Beyond me.
Nothing seems to make any sense to me.
Totally off my radar now..

I know you've been busy on Unlisted and follow a number of companies - understand your stance! I don't understand either......

Investing 101 if you can't understand (or in this case can't understand how its valued) then don't invest in it.

[Tony Two Gloves]

I know you've been busy on Unlisted and follow a number of companies - understand your stance! I don't understand either......

Investing 101 if you can't understand (or in this case can't understand how its valued) then don't invest in it.

I wonder if this answers our queries?

NOTE 8: SHARE CAPITALThe Company has 97,000,000 Class A shares on offer of which 590,127 (2020: 185,880)have been issued and 3,000,000 Class B Shares that have been issued to the foundingshareholders. Both Class A & Class B shares have no par value.
NOTE 8: SHARE CAPITALThe Company has 97,000,000 Class A shares on offer of which 590,127 (2020: 185,880)have been issued and 3,000,000 Class B Shares that have been issued to the foundingshareholders. Both Class A & Class B shares have no par value.

[Sideshow Bob]

I wonder if this answers our queries?

NOTE 8: SHARE CAPITALThe Company has 97,000,000 Class A shares on offer of which 590,127 (2020: 185,880)have been issued and 3,000,000 Class B Shares that have been issued to the foundingshareholders. Both Class A & Class B shares have no par value.
NOTE 8: SHARE CAPITALThe Company has 97,000,000 Class A shares on offer of which 590,127 (2020: 185,880)have been issued and 3,000,000 Class B Shares that have been issued to the foundingshareholders. Both Class A & Class B shares have no par value.

Info been looking at from the companies register: Shareholdings (companiesoffice.govt.nz) So I'm guessing the A class shares are being dribbled out as new investors buy in?

The Class A/B shares ties in with their constitution:

2.4 Rights attaching to Class A Shares and Class B Shares Unless otherwise provided by the terms of issue or by this Constitution:

(a) The Class A Shares confer on the holder each of the following rights:P a g e 5 | 34
(i) holders of Class A Shares are entitled to 97% of the total voting rights of all Shareholders in proportion to their Shareholding
(ii) Subject to clause 4 of this Constitution, holders of Class A Shares are entitled to not less than 97% of all Dividends authorised by the Board, to be distributed to the holders of Class A Shares in proportion to their Shareholding;
(iii) Upon the liquidation of the Company not less than 97% of the Surplus Assets shall be distributed to the holders of Class A Shares in proportion to their Shareholding.
(b) The Class B Shares confer on the holder each of the following rights:
(i) holders of Class B Shares are entitled to 3% of the total voting rights of all Shareholders in proportion to their Shareholding;
(ii) Subject to clause 4 of this Constitution, holders of Class B Shares are entitled to not less than 3% of all Dividends authorised by the Board, to be distributed to the holders of Class A Shares in proportion to their Shareholding;
(iii) Upon the liquidation of the Company not less than 3% of the Surplus Assets must be distributed to the holders of Class B Shares in proportion to their Shareholding.

My main query is how they value themselves at $3.99.

As an aside, NBR article behind the paywall: One-of-a-kind crypto offer fails to take off | NBR

[Tony Two Gloves]

Info been looking at from the companies register: Shareholdings (companiesoffice.govt.nz) So I'm guessing the A class shares are being dribbled out as new investors buy in?

The Class A/B shares ties in with their constitution:

2.4 Rights attaching to Class A Shares and Class B Shares Unless otherwise provided by the terms of issue or by this Constitution:

(a) The Class A Shares confer on the holder each of the following rights:P a g e 5 | 34
(i) holders of Class A Shares are entitled to 97% of the total voting rights of all Shareholders in proportion to their Shareholding
(ii) Subject to clause 4 of this Constitution, holders of Class A Shares are entitled to not less than 97% of all Dividends authorised by the Board, to be distributed to the holders of Class A Shares in proportion to their Shareholding;
(iii) Upon the liquidation of the Company not less than 97% of the Surplus Assets shall be distributed to the holders of Class A Shares in proportion to their Shareholding.
(b) The Class B Shares confer on the holder each of the following rights:
(i) holders of Class B Shares are entitled to 3% of the total voting rights of all Shareholders in proportion to their Shareholding;
(ii) Subject to clause 4 of this Constitution, holders of Class B Shares are entitled to not less than 3% of all Dividends authorised by the Board, to be distributed to the holders of Class A Shares in proportion to their Shareholding;
(iii) Upon the liquidation of the Company not less than 3% of the Surplus Assets must be distributed to the holders of Class B Shares in proportion to their Shareholding.

My main query is how they value themselves at $3.99.

As an aside, NBR article behind the paywall: One-of-a-kind crypto offer fails to take off | NBR

Would it be if they had Crypto valued at $3.5M as at 31/3 divide by the 590,000 shares would equate to $5.93 which I believe was there SP around that date. Some of the coins they have are down around 50% from there highs so the SP at $3.99 would their Crypto value now be $2.3M? I really have no idea but the Company needs to clarify if they want to get some shares trading.