Navra Client evening / Share Launch

[Steve Navra]

We are holding our annual client get together / Cocktail evenings on the following dates:

Canberra: 25th Nov
Melbourne: 26th Nov
Brisbane: 27th Nov
Sydney: 04th Dec

These always prove to be wonderful evenings of networking with like minded people, hearing from the 'horses mouth' from my clients as to what they have achieved working with the group and this year will include the "Share Offer".

I have been asked to allow forumites to attend so if you are interested in partying with us please contact:

Renee at my Sydney Office (02) 9087 1801
and she will send you out an invite.

Forumites interested in the share offer are welcome to apply, (please see Caveat Emptor) . . . however please note that my clients will receive first priority to the available shares.

Come for a few drinks anyway

Regards,

Steve

 

[Steve Navra]

Originally posted by Steve Navra

Come for a few drinks anyway

'bump'

Hey Forumites,

This is your opportunity to come and meet some very wealthy people . . . and find out from my clients themselves just how successfully 'Optimised Structure' has worked for them.

Ahem, Bill.L where are you??
(This is as "Gilt Edged" an invite as you will ever receive!)

Regards,

Steve

 

[geoffw]

Steve,

The Canberra launch was a very well worth while event.

My personal apologies for coming late, but MrsW was checking things out for me before I arrived, so I did not completely miss out on "the most important part", as you mentioned, which was your own presentation.

A number of forumites did come- it's always great to have opportunities to catch up with people, and to meet a few more.

But it was a pity- as a latecomer, there were a number of unclaimed name tags from forum members

 

[Aceyducey]

Yup - it's definitely worth attending the event in your city if you can make it.

And HandyAndy even made the trip from Sydney to get his hands on the prospectus early!

A good event Steve & a good offer

Cheers,

Aceyducey

 

[Sim]

Naturally Steve made sure that every single event was in a city that I was NOT in at that time (travelling a lot for work at the moment).

*sigh*

 

[geoffw]

The prospectus is available online- http://www.navrainvest.com.au/index.asp?content=sharesale

Applications cannot be processed until the end of the ASIC disclosure period- December 2 I think.

Current shareholders will have first priority, clients second, and general public last.

It's not a float per se, as there's no new money being raised- it's existing shareholders (primarily Steve) selling their holdings due to customer demand.

So if you can't make it on the day, the only thing you miss out on is the free drinks.

 

[handyandy]

Hi All

It was actually for the free drinks You Know spend $200+ to get $10 of drinks

Apart from meeting up with you guys, to put faces to names, it was to get a feel for the whole launch and offer.

As it turns out the share offer is even more worth while, as Steve annouced that annually there would be a similar prospectus offer where if you want to lighten your share holding you can participate as a seller.

This in it self makes participating in the the offer viable as it addresses the liquidity problem should you need to sell a large parcel of shares.

Chhers

 

[Aceyducey]

Originally posted by handyandy
As it turns out the share offer is even more worth while, as Steve annouced that annually there would be a similar prospectus offer where if you want to lighten your share holding you can participate as a seller.

This in it self makes participating in the the offer viable as it addresses the liquidity problem should you need to sell a large parcel of shares.

I was not quite sure if Steve would do this annually, as it would require enough people to want to sell their shares

However, Steve offered to buy back any shares people wanted to unload - or put people in touch with buyers whom they can then talk to and negotiate with (without Navra Invest acting in any kind of official capacity as a stock market as this would be illegal).

Of course people could offer their own shares for sale in caveat emptor.... as long as it was clear that the forum was not acting as a middleman

Cheers,

Aceyducey

 

[Sim]

Originally posted by Aceyducey
Of course people could offer their own shares for sale in caveat emptor.... as long as it was clear that the forum was not acting as a middleman

Actually, given the rules for caveat emptor (property deals only), this would not be allowed.

 

[Aceyducey]

Originally posted by Sim
Actually, given the rules for caveat emptor (property deals only), this would not be allowed.

OK, I'll sell you 500 shares & throw in a property - how much am I bid

Cheers,

Aceyducey

 

[Phil_H]

Originally posted by Aceyducey
OK, I'll sell you 500 shares & throw in a property - how much am I bid

Umm how bout I sell you a property.......and there is 500 shares in the 3rd bedroom under the carpet.....that wouldn't upset a moderator then

Cheers

Phil

 

[Sim]

Sorry, still no good.

The only way to keep the moderators happy is some suitable compensation (or is that commission ?) for facilitating the transaction.



* Sim' provides bank account details for bribe deposits

 

[Steve Navra]

Originally posted by handyandy


As it turns out the share offer is even more worth while, as Steve annouced that annually there would be a similar prospectus offer where if you want to lighten your share holding you can participate as a seller.

This in it self makes participating in the the offer viable as it addresses the liquidity problem should you need to sell a large parcel of shares.

Originally posted by Aceyducey

I was not quite sure if Steve would do this annually, as it would require enough people to want to sell their shares

Just to clarify these two quotes:
It is certainly my intention to allow shareholders the opportunity to formally sell some of their shares on an annual basis, via a prospectus.

As Aceducey correctly states, this is on the assumption that there are shareholders willing to sell.

The mechanism simply will be that I will ascertain which of the share holders wishes to sell shares and then assuming the number of shares available is reasonable, will produce a prospectus for the amount of shares on offer.

Please Note: I used the term "FORMAL" meaning through the Navra Group by way of a prospectus.

Every shareholder has the right to sell down their shares to whomever and whenever they might wish to on a private basis.


The fact that I will provide the conduit to do so is purely so that we can give our shareholders and clients first bite at the cherry.


regards,

Steve

 

[keithj]

$50 million

Hi Steve,

As I'm a great believer in your philosophy I read your prospectus with interest.

A couple of points -

- NavraInvest issued 20 million shares a year ago and the shareholders paid $6 million for them - that makes it 30c per share. Now they're offering to sell some at $2.50 each. That's more than 800% increase in a year valuing the company at $50 million.
How was this valuation of $50 million arrived at ?
What is the Fair Market Value of the shares (considering they are not traded on the ASX and are extremely illiquid) ?

- Your family trust is attempting to sell 3 million shares and hopes to receive $7.5 million. You mention in the prospectus that the purpose is to realise part of the investment. Why would your trust want to do that ?

- Section 10.5.1 states you'll be full time Sales & Marketing Director receiving around $200K pa. Does this mean no more seminars or financial advice ?

- The prospectus didn't mention any exit strategy. How can shareholders get their money out ? Since you control the company (by virtue of the number of shares you control) there is no guarantee that they can.


Cheers,

KJ

(I posted this in Caveat Emptor first, but it seems there's more discussion in this forum, and my last point is answered here)

 

[Steve Navra]

Re: $50 million

Originally posted by keithj


As I'm a great believer in your philosophy I read your prospectus with interest.

A couple of points -

Hi Kieth,

Thank you for the positive feedback and for these salient questions.

- NavraInvest issued 20 million shares a year ago and the shareholders paid $6 million for them - that makes it 30c per share.

No!! The company was formed and 20 million shares were issued. At that time there was much interest in the NavTraDE system and the choice was either to sell the controlling interest to a large consortium for approx $20 mil, or to rather offer it to my clients by way of a capital raising exercise.
I decided to go with the client option, because together I felt we would be far more ethical than a profit chasing corporation. (After all, this was a share fund formed for and at the request of the client base.)

I chose only to sell 30% of the company to these original investors: 30% of 20mil = 6 mil shares at $1-00 each.
The balance of 70% (14 mil) would be held by myself so as to keep full control of the company, be able to offer the entire client base the opportunity to acquire ownership in the company at a later stage (now) and for a staff share trust.

So to sum up your question 20 mil shares at $1-00 each = $20mil.
(Of which only 30% (6mil) was sold in the initial offer.


Now they're offering to sell some at $2.50 each. That's more than 800% increase in a year valuing the company at $50 million.
How was this valuation of $50 million arrived at ?

Shares now offered at $2-50 each, which is a 150% increase.

The price was ascertained by assessing the demand against the number of shares on offer to achieve a balance of $2-50 per share. So the answer translates to supply - demand.
Extrapolated out then this indicates a total value of the company at $50 mil. At the start up point this might be difficult to imagine however:

Should the company develop as is envisaged then $50 mil will be grossly undervalued.

On the other hand if the company does not grow, then it could be overvalued.

I suppose it is risk for reward - these who get in early stand to make the most - if succesful. Other than that I can only go with the demand at a price . . . let the free market decide.

What is the Fair Market Value of the shares (considering they are not traded on the ASX and are extremely illiquid)

The fair market value is whatever the purchasers are prepared to pay. The shares are are liquid! A shareholder can sell their shares to whomever wishes to purchase them. (subject to reasonable board approval) The mechanism of the share sale however will be different from an ASX sale, because the company is not yet listed.
My intention is to assess on an annual basis how much the investors might wish to sell, ascertain what the demand is , set a 'supply - demand' price and then offer further prospectuses to facilitate the transactions. (I will do this to continue to offer my clients and the investors first bite at the shares on offer.)


- Your family trust is attempting to sell 3 million shares and hopes to receive $7.5 million. You mention in the prospectus that the purpose is to realise part of the investment. Why would your trust want to do that ?

Three reasons:

1) The assessed demand is for an amount of shares greater than this . . . so that I can meet the clients requirements. The main reason is to create advocacy by way of 'word of mouth' recommendation. (Which is how we have built the group from inception.)

2) I previously mentioned on the forum that my wife and I had split up. Fairly or unfairly the 'Family Court' could award my ex up to 65% of all my assets including my trust, which controls the shares in Navrainvest!! (Groooooan) It made far more sense to offer my ex a cash payout rather than have the control of the company under attack. Hence a sell down of some of the shares to facilitate the divorce settlement.

3) The funds to date have been built up from investments made by our clients. It is now time to enhance the marketing program beyond the client base and this is an expensive exercise. I have chosen NOT to use company funds for this cost, rather I will personally fund this expense - and will use the liquidity of the sell down to do so. (I will stilll maintain 46% of the shares and thus keep control of the comany)

- Section 10.5.1 states you'll be full time Sales & Marketing Director receiving around $200K pa. Does this mean no more seminars or financial advice

Seminars and financial planning are part of the marketing excercise!! (Where do you think all the investors have come from?? )

- The prospectus didn't mention any exit strategy. How can shareholders get their money out ?

Answered above

Sincerely,

Steve

 

[oceangirl]

Navra event

Thanks Steve, for a very well-organised event and the terrific hospitality.

Again, as I am new to the approach, I still have a lot to learn, but I got a strong sense of the "community of investors" from the evening.

This is also what I really appreciate about the Somersoft forum, and what will keep me going in this quest to get the best financial strategy happening for me.

Thanks to you all!

Oceangirl

 

[lupus]

Steve,
Thanks for a lovely evening in Brisbane. Am interested in your responses with regards to your reply as to why the family trust is selling out and aims and intentions.

Perhaps I have not read the prospectus clearly, but I don't believe I saw anything with regards to the company's aims with regards to dividends, etc. Granted in the early stages any profits would probably be slim, but is it the company's aim to retain profits to help build business? Or will profits be divided out to the investors. Guess I am wondering whether this investment will be a growing income stream or a capital play?

Thanks

 

[Aceyducey]

Lupus,

I asked about dividends in the Canberra meeting....

They are on the list of intentions for the future....probably sooner rather than later.

How much is not yet determinable as the fund is still really in start-up mode (only been trading for six months) and officially I don't think he can comment too much on this as they are not being issued now, but are likely to be in the future (talking about them too much could be considered talking up the stock).

I keep in mind Steve's love of companies that issue dividends & believe that he will put his 'money where his mouth' is so to speak and pay them....

Remember it's to his advantage as well as he retains a large share holding

Cheers,

Aceyducey

 

[geoffw]

Originally posted by Aceyducey
Lupus,

I asked about dividends in the Canberra meeting....

They are on the list of intentions for the future....probably sooner rather than later.

How much is not yet determinable as the fund is still really in start-up mode (only been trading for six months) and officially I don't think he can comment too much on this as they are not being issued now, but are likely to be in the future (talking about them too much could be considered talking up the stock).

I keep in mind Steve's love of companies that issue dividends & believe that he will put his 'money where his mouth' is so to speak and pay them....

Remember it's to his advantage as well as he retains a large share holding

Cheers,

Aceyducey

Acey,

As I remember Steve's answer to your question- I believe his answer also mentioned that a company operating on the size that it was would not provide a large divident in the short term- and it was only if the company had a much larger investment base that it would be able to provide a good dividend. That was a part of the reason (I think) for selling the shares- to be able to market the fund to institutional investors.

 

[Steve Navra]

Originally posted by Aceyducey
I keep in mind Steve's love of companies that issue dividends & believe that he will put his 'money where his mouth' is so to speak and pay them....

Remember it's to his advantage as well as he retains a large share holding

YES!!

Steve