Looking for Interest

On Wednesday, October 27th, I sent email to a group of friends looking to see which ones were potentially interested in investing in CPC. On Tuesday October 29th, I posted essentially the same letter to a private Facebook group. Since the email and Facebook post were essentially the same, with the sole difference being explained in the Facebook post, I'm only including the Facebook post.

Craft Poker Co. investment interest?

Below is a copy of what I posted to the BARGE mailing list on Wednesday, the 23rd. The only change I've made is I have fixed an error that was in my BARGE post where I had incorrectly listed the number of remaining shares as 2,530 instead of 1,520 (2,530 is the number of shares sold already).

FWIW, I feel weird posting this here, because by and large I don't participate on Facebook. I chose not to have a Facebook account until May of 2023 and since then I have mostly found it a time sink and to a lesser extent a source of social anxiety. Oh well, I hope you all understand.

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Craft Poker Co. (CPC) has 1,520 remaining shares of Series A Preferred Stock to sell at $175 / share. I'd like to get a ballpark level of interest from BARGErs (and non-BARGErs, too, but at a lower priority).

The current ownership structure and the liquidity preference (i.e., the thing that makes these shares preferred) are described on the Craft Poker Co. page of mb2's Players' Manual. Please open and read that page.

Buying Series A Preferred shares is essentially a bet on me, with the work I've already done on mb2 as a backstop.

I believe that in the future, I will be able to find investment in CPC at a pre-investment valuation of ten million dollars or more (making each Series A Preferred share worth > $500) and from there grow CPC into a respectable company, supporting both the freemium business craftpoker.com as well as white-labeled sites and other revenue streams.

If I'm wrong, and I have to liquidate CPC before we get that level of investment, then the liquidity preference means that the net proceeds of the sale are split in half, with half going to me and the other half being split pro-rata amongst the Series A Preferred shareholders. In such a liquidation, assuming all 1,520 Series A Preferred shares have been sold, the net liquidation break-even point (i.e., where each Series A Preferred share would be worth $175) is $1,417,500.

For contrast, consider the (I believe very unlikely) scenario where only an additional 100 Series A Preferred shares are sold. In that case, the break-even would be $920,500. So, a hand-wavy way of looking at things would be that the software I've already written is worth just a little less than a one million dollars, with the idea that I could make it worth half again as much with an investment of approximately a quarter of a million dollars.

I believe this is a good deal, but I believe a variety of weird things. I'm happy to explain why I think it's a good deal and to provide a lot more details, but I'd rather do that by answering questions and adding pages to the Players' Manual than overwhelm people with an even longer email.

The last time I sent an email like this out, I was only looking for accredited investors and was looking for a minimum of $5,000 investment. That went well. This time, I'm looking for interest from anyone--especially BARGErs--with the only minimum being a whole number of shares.

Having some idea of the level of interest from BARGErs will help me decide how best to spend my time to ensure that all 1,520 shares are sold "relatively" quickly. It will also allow me to finalize some elements of the SEC Form C that I need to submit to allow me to sell to non accredited investors. If all 1,520 shares can be sold to BARGErs, great! If not, I'll query some non-BARGErs, friends of BARGErs, friends of friends, etc.

Assuming there's at least one person interested, I'll create a spreadsheet with rows for each inquiry and send a private email acknowledgment. It'll take a while for me to get the various paperwork in place (everything takes longer when you're broke, and I'm beyond broke), but I'll provide updates off this list.

In addition to posting to the BARGE list, I will post on the PokerPeeps Facebook page. I will also be contacting a few BARGErs via email. I do not plan on sending anything to BARGE announce or the other xARGE mailing lists, just because I don't like spam and clutter. I do, however, hope that if you are reading this and you know an ARGEr that doesn't read the BARGE mailing list or all the PokerPeeps posts that you spread the word.

Thank you!