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I must say, it takes a certain kind of flair to conceive and implement a plan to take a sole-founder company that is only 3 months old public for the purpose of
by grellas 16y ago
I must say, it takes a certain kind of flair to conceive and implement a plan to take a sole-founder company that is only 3 months old public for the purpose of raising $12K in seed funding while incurring $9,700.90 in out-of-pocket expenses in the process (see Item 13 for an itemization) - an IPO that will net a best-case of $2,300 for a stock for which the offering entity disclaims that any public trading market may ever develop!
This reads like a parody of a typical public filing - every disclosure solemnly declares that the company has no assets, no experience, no prospects, and no future to speak of (other than what one might expect of a very young and very green founder who is 3 months into his first company). This is actually pretty funny - sort of like a po-faced guy intoning in mock seriousness about something he knows is wildly out of sync with reality but never letting on about it.
It must be quite a learning experience for the founder and that I assume is its sole point. Quite an amazing story.
- sublemonic 16y agoWhy is the best-case $2,300? The stock could sell for any price if it's offered.
- ahi 16y ago"The sales price to the public is fixed at $0.005 per share" Maximum the ipo can bring in is $12,500. As noted above, expenses incurred by the ipo: $9700.90
- bryanh 16y agoLove it. Interestingly enough there is a (somewhat useless) discussion on Reddit (http://www.reddit.com/r/reddit.com/comments/c6e49/a_girl_named_ali_wrote_sixty_original_songs_and/ http://www.reddit.com/r/reddit.com/comments/c6e49/a_girl_nam...) about a "bully who says he owns the right to "power hour" and is trying to shut [innocent site] down".
- DenisM 16y agoStill it's an interesting question - can a small company go public? I vaguely remember there is a simplified procedure for companies with less than one million in revenue. How much pain is that exactly?
- irrelative 16y agoWhat seems like a parody to you, seems like a pretty clever hack to me. The novelty of the making a beer pong company seems like the ultimate slap in the face to other public companies worrying about SOX compliance and such. I bet they make a lot of money from people willing to laugh at the idea and support their idea.
- jrockway 16y agoReminds me of the homeless guys whose pitch is something like "I don't want money for food, I just want to buy beer". They expect the honesty to work, but personally, I think that if you want to get wasted on beer, you should get a job. So while the pitch is unique and honest, they aren't getting any of my money.
- grellas 16y agoYes, it is a pretty clever hack but one that reads like a parody (at least to a lawyer's eye, having read too much of the usual bloat that fills the S1 statements over the years). By the way, the most priceless detail in the whole thing: SEC registration fee = $0.90 (Item 13).
- dpapathanasiou 16y agoAnd in the late 90s, investment banks would be taking this out on roadshows.