Investment is a general concept of putting forward our own money,
time and effort, or those of others, in return for appreciation of value. Virgin Gold is an investment vehicle specifically
dedicated to generating a good return for shareholders, regardless of gold
price. Using stringent production costing, hedging and electronic
trading, Virgin Gold can focus on its
strategic objective of maximizing net asset value and cash flow per share.
By offering new Convertible Preferred Stocks to global
investors, Virgin Gold aims to raise
more capital to expand its global operations and achieve its objectives
earlier.
What we offer
Virgin Gold is
undertaking an exercise of issuing fresh Convertible Preferred Stocks (CPS) and
invites willing investors worldwide to take up this offer. The offer price
starts at $0.80/share on 1 January, 2010 and will be increased periodically in
accordance with the net asset value of the company. Such offering may be
subject to a time limitation and the corporation’s need for capital.
Preferred Stock
Although
preferred stock does not offer the same potential for profit as common stock,
it is a more stable investment vehicle because it guarantees a regular dividend
not directly tied to the market like the price of common stock. This type of
stock guarantees dividends, unlike common stock.
The
other advantage of preferred stock is that preferred stockholders get priority
when it comes to dividend payment. In the event of a company's liquidation,
preferred stockholders get paid before those owning common stock. In addition,
if a company goes bankrupt, preferred stockholders enjoy priority distribution
of the company's assets; while holders of common stock do not receive corporate
assets unless all preferred stockholders have been compensated.
Like common stock, preferred stock represents ownership in a
company. However, owners of preferred stock do not get voting rights in the
business.
Convertible Preferred Stock
Convertible
preferred stock is a type of stock which has a conversion price named at its
issuance so that it can be converted to a company's common stock at the set
rate.
Virgin Gold Convertible
Preferred Stock may be converted into Common Stock of the
company when the company chooses to launch an Initial Public Offering (IPO) by
paying 50% of the price difference between the subscription price of
Convertible Preferred Stock and the IPO share price.
Virgin Gold Convertible Preferred Stockholders are entitled to a fixed monthly dividend payment as agreed at the
time of subscription. Convertible preferred stockholders may also unsubscribe
their shares by giving 45 days’ notice to the company for a full refund of the
subscription amount.
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