An additional $17M from existing CI investors

[Montoya]

CI(G) announcing that the existing investors who they raised $45M from (for 10% of the company), exercised an option to buy an additional $17M worth of CI.

The announcement below mentions that the Calder family was given the option to purchase more shares at the time of the original agreement.

The two ways to look at this are 1) The Calder family likes what they see and want a bigger piece of the pie, so they exercised their right to buy more shares at a discount, or 2) This time its really 90 days tops because its the end and CIG is bleeding money, something Sandi fancy house and cars and possible all come come crashing down any day now.



Cloud Imperium Raises Additional $17.25M Investment from Existing Investors
Mar 27, 2020
March 27, 2020 – Today, Cloud Imperium announced that existing investors – the Calder Family Office, Snoot Entertainment, and ITG Investment – have exercised a one-time option to purchase further shares in the company. The share prices reflect a discounted option price for existing shareholders that was pre-negotiated at the time of the initial investment in 2018. There were no changes to the Board composition as a result of this transaction. Chris Roberts continues to maintain full control of the Board and Group.

 

[Lorddarthvik]

 

[Cugino83]

Hmm interesting...
Since the previous investment is mostly or in total end up in SQ42, that could also mean that SQ42 is in a good state of advancement and in good shape, so good that investo trow more money into it.
SQ42 is suppose to enter beta this autumn, I don't beleave it, but this news could mean that the beta is not actualy that far...

 

[CosmicTrader]

Inflation. LOL

 

[Thraesh]

I look at this as a maybe positive thing. With the investment, we will potentially get to have them hire a few more workers which would expedite the process of SQ42 and have it actually ready for their set date of Q3 beta, which in turn would mean we would then see a shift to PU. Again this is hopeful thinking on my end

 

[NaffNaffBobFace]

Now that Crytech nonsense is out of the way the investment may be considered to be a no-brainer?

 

[SoloFlyer]

The initial investment was for a percentage of the company. The 17 million was for a shit ton of auroras.

 

[Montoya]

Now that Crytech nonsense is out of the way the investment may be considered to be a no-brainer?

I think the Calder family probably had news about that Amazon email way before any of us did, so they would have been over the Crytek case a long time ago.

Its more likely that the investment had a time limit, they had the option to add more money within a specific time period.

 

[DirectorGunner]

I believe

 

[Lorddarthvik]

The initial investment was for a percentage of the company. The 17 million was for a shit ton of auroras.

Are you saying we got a rival for blocking out the sun?
Or maybe they want to invest them into TEST?
Hmm

 

[Sraika]

neat
:p
this is all pretty standard stock stuff, so i dont think it's bad news - or good news for that matter
just news

 

[Sky Captain]

Aye, and an $18M drop in the Star Citizen bucket it is.

At their $45M annual cost burn rate, CIG is going to need another 200M to launch both games based on current level of game play progress they show us.

 

[Phil]

I know CIG came off a big November sale last year but I will stick to my original predictions, SQ42 gets massively delayed by a year which costs a ton of money they cant afford, this puts the core game back another 2 years to maybe a 2024 release or beta. I also think we will be hearing next year about promises broken and some sort of consumer fee added to the game, some sort of merging with another company, something will happen that will be a huge change to this game. I just don't think they can keep this up indefinitely with the funding information I have seen, the deadlines they are aiming for and the progress we are being shown.

I hope I am wrong, I really love this game but my spider sense has been tingling for a few years now and it says trouble is on the horizon.

 

[Bambooza]

I believe

I can fly.

 

[NaffNaffBobFace]

I can fly.

Can you touch the sky?

 

[Radegast74]

Hmmm, so if we got all of TEST to each pony up ~ $1000 each, could we "exercise" our options?

 

[SoloFlyer]

Hmmm, so if we got all of TEST to each pony up ~ $1000 each, could we "exercise" our options?

Exercise? I thought the point of video games was to ignore that

 

[Montoya]

At their $45M annual cost burn rate, CIG is going to need another 200M to launch both games based on current level of game play progress they show us.

Like everybody else here, I do not believe deadlines until I actually see them, but one thing to remember is that game development is not linear.

Just because it took 7yrs to make the Stanton system, does not mean it will take 7yrs to make the next system.

In fact I would not be surprised if they could spin up the basics of an entire star system within a day. The orbits, planet sizes, weather conditions, color palates, all done with a few keystrokes now. Slap in a few orbital space stations, also procedural, and you have a new system ready to go.

The only thing that may take time is if the system has a few important landing zones, those require a lot of attention, but again, the tools to do all this have been developed.

I fully expect Star Citizen to become the most expensive game ever developed.

 

[Montoya]

SQ42 gets massively delayed by a year which costs a ton of money they cant afford

We all said that back at $50M, then again at $75M, and again at $100M.

At $200M we questioned their ability to keep raising money, then today again at $275M.

They seem to keep affording more development by selling ships.

When ship sales stop, thats when we can finally end this scam! :D

 

[Phil]

We all said that back at $50M, then again at $75M, and again at $100M.

At $200M we questioned their ability to keep raising money, then today again at $275M.

They seem to keep affording more development by selling ships.

When ship sales stop, thats when we can finally end this scam! :D

Now now, I never claimed it was a scam, if I thought it was a scam I wouldn't have 2k invested in the game and continue to invest in it. :P But if something fails it doesn't mean it was a scam, people fail all the time and have good intentions. failing doesn't mean it has malice behind it. And I am not here saying this game is going to fail, I never said that either, I just simply said the original concept, no monthly fee, service etc.. is prolly going to change, the promises made, are prolly going to change, that doesn't mean fail or scam, it happens a lot especially in the gaming industry of late.