Originally posted by foo ling yu
It's cost ab1 shareholders a percentage of their holding.
The HTC/crypto kitties deal was an example of a good deal with a poor company, ab1 had nothing to lose there.
I think ab1 has better options than dishing out bits of the company to any Tom dick n Harry that shows interest. Atari is a fallen giant desperate to get back in the game and we've given them the upper hand in this deal, we have all the responsibility with minimal opportunity in comparison to rest of this year's progress and we gave them a piece of the company for the privilege.
When compared to sandbox, decentraland etc. This is just chicken feed mixed with dogshit. Nothing more than a trophy for yat.
Yes, bad deal.
Imo
I don't mind the deal as it's structured to give us access to assets we'd otherwise have to pay cash to use. By offering $250k of stock at a 10% premium to the price its really costing us $225k.
If it's turns out to be profitable then shareholders get to keep the first $500k of profits, which is a return in excess of 100%.
If its not profitable then yes, we've diluted the share pool instead of what we would otherwise have lost in cash had we paid for the royalty outright.
With Atari as a stockholder and looking for a profit share at some point then you'd hope they will be busting their guts to make this partnership a success.
The rest of us retail holders have just flicked a bit of cash into the hat and hoping management can make it grow without input from us.
