ATM- for LEM shareholders

Dear Shareholders,

as we have outlined before we have now our own ATM-system successfully installed in Secondlife.

It takes on request of us a realtime extract of the LEM-shareholder list from CAPX, together with the corresponding UUID-keys. What you then have to do is to go to our office in Secondlife and touch the ATM.

A menu will appear where you have to press the option e-mail and type in manually your e-mail address which is associated to your avatar. If you have none you can easily create one over gmail or similar.

All the information (LEM-shareholder list, avatar name, avatar email) is then stored outside Secondlife on an external server. In case Secondlife and CAPX would go down the well, this information would still be availbale. More importnat for you is the link of the database to our external security cash reserve we keep on Paypal.

This security reserve is in train to be built up and shall finally equal the nominative equity captial of LEM (1 mio $L). This should happen over the next 3-6 months. In case of liquidation shareholders would then have access to a liquidation dividend which is composed of the nominative equity captial + proceeds of LEM assets.

The system isn't perfect yet. The best would be to have full RL transparency when it comes to ownership...lol... but still it is a first step in that direction, also we are the only virtual company right now doing such things.

Anyway, to stimulate your interest a bit we do what we call an ATM competition. Among those who have signed up and left their e-mail address till 30th September 2012 at 3am SLT, we will pull at random a winner. That lucky avatar will get 1000 $L as a price. His name will be published  at our blog and in our forum at CAPX.

ok, then, happy siging in and also trading of course

Greetz
Casper Trebuchet
LEM, chairman

PS: ATM-system is powered by SmartBots

Results of the the poll about future evaluation of assets and security of shareholder equity

The poll in which we asked you to vote whether LEM should implement a new approach for the evaluation of virtual assets and the security of sharehodler equity ended recently. 60% voted yes, among them our major shareholders. As a result we will bring this new evaluation in place and take measures to protect the shareholder equity in case of failure.

Only 10 persons participated in the vote what I think is an amazingly low ratio compared to the 70 shareholders we count. We could have expected a better participation. Does this means that a bigger part of the shareholder's community simply doesn't care about virtual company evaluation or protection of the shareholder equity? We cannot answer this question. For us the evaluation of the assets of LEM and the protection of the shareholder equity has a mere ethical dimension. It makes a difference for us whether you tell a potential investor, "you have to consider that if you give us money all can be lost" or we say, "you trust us money, so we take measures to protect the shareholder equity as best as we can and take a moral commitment if things would go wrong".

Such is exactly as we will proceed. In the future and the first time for the financial report of 2Q2012 we will proceed as follows:

Liquidation reserve

The most important measure is the protection of shareholder capital. We studied different possibilities. To keep things easy we will build up a cash position at PayPal till it reaches the nominative capital of LEM. As we have 2 mio shares with a nominative value of 0.5 $L per share that gives an equity captial of 1 mio $L. We hope to build up this liquidation reserve within the next two quarters. It looks as we won't have a bad next quarter which permits us to work straight forward in this direction. The liquidation reserve will find a seperate entry in our financial report, the first time for the 2Q2012.

In case of a liquidation that liquidation reserve would entirely be at disposal of the shareholders. You have to add to this the other assets like shares, participation, intangible assets etc which would be sold and would also contribute to the liquidation dividend.

You can criticize that a liquidation reserve is also not safe at Paypal and out of control of the ordinary shareholder. However, we think it makes an ethical difference whether we put the liquidation reserve in our financial report and show a commitment to it, or we just let the shareholders bear all the risks - "we have told you before that you might lose everything"... lol. Also, and this is an important point, the liquidation reserve will be outside CAPX and SL. RL is still a more stable environment then SL....

Portfolio evaluation

1. SL goods: 25% of the sale price in SL
2. Real estate in SL is estimated with 50% of current evaluations in world. Right now ca,. 125'000 $L per SIM.
3. Cash: 90% of the value in $L
4. Shares at virtual stock exchanges: 10% of market price
5. RL equipment: No value as not addressable in a liquidation
6. Intangible assets & goodwill: No value if no prove can be given

To summarize, LEM will become more cautious and restrictive towards company evaluations, and is trying to give more security to the shareholder capital what we think is an important step for happy trading in SL. There are simply too many rascals with greedy eyes crossing your way in virtual financial markets.... lol .. Lemurians included

The profitability of LEM might be harmed a bit by these measures, but on the benefit of more security. And be assured that we are not planning to liquidate LEM ...

Again, happy trading

Greetz
Casper Trebuchet
LEM, chairman