Feb 18th, 20:54 SLW SLWallet.com
by Arbitrage Wise
SLWallet Prospectus
The prospectus was not uploaded during the conversion. We will work to modify it, but have listed it below in the meantime:Stock Symbol
SLW
Company Name
SLWallet.com
Company Tagline
Payment Gateway for Virtual Worlds
CEO's Real Life Name
Thanh Ho (Interim)
CEO's Real Life Location
Dallas, TX
Board of Directors
Chairman - Arbitrage Wise
CEO - Arbitrage Wise (Interim)
President - Kadena Whitfield
BOD - TBA
Total Shares to Create
85,000,000
Shares to IPO
85,000,000
IPO Price
1.00
IPO Days
Immediate
Cash on hand
5,000,000
Land owned
195,000
Monthly Income
2,000,000
Monthly Expenses
150,000
Name for Chairman's Letter
Legitimizing the SL Financial Sector
Chairman's Letter
Those of you who have known me know that every business I do has to be able to link to Real Life commerce in one way or another. In order to be a large business in virtual worlds, you cannot limit your business model simply to the neither confined metaverse nor Second Life alone, but must venture out and try to capture real-life ecommerce and other virtual worlds as part of your customer base.
SLWallet.com is the next major step in tying Real Life e-commerce and metaverses together. As Second Life grows, the L$ may become more widely accepted as a form of payment for products and services on hundreds or even thousands of websites. In order for these services to accept L$, they will need a third party provider or payment gateway to provide them the necessary services.
As more virtual worlds and metaverses including open source grids become available, there will be a need for these various grids to conduct commerce with each other, thus a need for a currency platform that will allow the conversion of various fictional currencies. SLWallet will strive to stay ahead of the curve, and position itself so that when these new metaverses emerge, we will be prepared and in position to offer a 'forex' for the different platforms.
Business Overview
In order for SLWallet.com to be the payment gateway of SL and eventually other metaverses, it will have to:
1) Obtain a sufficient amount of customers in order to compel 3rd party users and non-SL grid residents to use our services.
2) Be liquid enough so that customers can access their funds at any time.
3) Position itself as an early pioneer in open source grids.
Business Strategy
In accordance with the requirements listed above for SLWallet, the following strategy will be implemented to achieve what is needed:
1) Before LL announced their no banking policy, SLWallet and its affiliate networks had over 11,000 total accounts, and 6700 unique customers. Our target goal is to get 20,000 to 30,000 additional customers by the end of 2008 by offering various services tied into SLWallet, including the SL Capital Exchange, the Wise Property Management, Helpture.com, and SL Market Live. All of these services will use SLWallet as the primary payment system, and leveraging off of theses various businesses should help us acquire the desired customer base.
2) Since LL's ban on banking, we have been in a liquidity crunch that is very tough to get out of. A successful debt to equity conversion will help alleviate the liquidity issues that we currently have by converting the current deposits into SLWallet shares. We are confident that if we can have a successful conversion, we will be able to make all of our investors whole again by the end of the year.
3) From our recent research in January, we have determined that open source grids such as OpenSim and CentralGrid do not have the technology available for a banking or currency operation. However, that does not mean that these possibilities will not become available. Once the technology is sufficient to open a banking system in these grids, SLWallet will position itself to establish a bank and possible currency in these platforms.
Revenue Streams are as follow:
SLCX: Current revenue has surpassed 500,000L per month. If we can get the business to average 750,000L per month by the end of the year, that would mean SLWallet will make 375,000L per month after dividends.
SLR: Our goal is to get SLR to generate an average monthly revenue of 150,000L a month by the end of the year. That would generate 75,000L a month for SLWallet after dividends.
Ad Network: Our ad network system was developed to run on all of our ATMs. In conjunction with ads sold on the ATM, we can also generate revenue from licensing or selling the platform for additional revenue. The current system has features such as: 1) The ability to change texture from a web-based admin 2) Ability to give specific items per texture 3) Click-Tracker & Reports. We are confident that if we can expand our ATM network, we will be the first true grid-wide ad network in SL. If we can develop this to where we want, a conservative estimate for monthly revenue is 200,000L. Before the banking ban, we were making 200,000L a month from ATM ads.
SLML: We will upgrade the current SLML platform to be a regular ecommerce platform suited for both RL and SL retail. We will then use our import/export along with our SL experience to help market an ecommerce company such as Zappos.com, whom we have initiated contact with , while using Helpture to outsource development of items from RL to SL versions, thus enabling us to sell RL and SL versions of items (with approval of manufacturer). Once small RL retail sees this as an alternative for extra revenue streams, we are confident that this will help foster the growth of our overall businesses. If we can develop this to where we want, a conservative estimate for monthly revenue is 1,00,000L.
Helpture: As SLML grows, we will be able to attract more RL independent retailers looking to get into Second Life. These developers will need a solution to getting items built for the virtual world. Helpture will serve as an intermediary between these users, and will use SLWallet to escrow payments between the developers, and charge a transaction fee to the developer. By combining SLWallet, SLML, and Helpture, we can offer retailers a single solution for getting into Second Life and other virtual worlds. A conservative estimate for average monthly revenue by the end of the year would be 100,000L per month.
WPM: If we can maintain one of the largest customer database in SL, we are confident that there will be higher demand for our property management system. A conservative estimate for average monthly revenue during the 1st year of business is 500,000L a month after dividends.
Currency Exchange: Our currency exchange is stagnant, but still made about 50,000L a month. Once we gain more trust of SL residents as we pull through the liquidity issue, we can expect the numbers to climb to about 200,000L a month.
Google Adsense: We are currently generating about 100,000L a month.
If we can reach these goals, we should make roughly 2.4M a month on revenue. Based on a real world 3-year valuation and assuming a monthly expense of 400,000 per month, SLWallet is worth around 72M (2M x 36months), which is relatively cheap for a company that has such brand awareness in SL.
Ultimately, SLWallet's end goal is to be bought out by a RL company that sees the need to integrate our business with their's, similar to eBay purchasing Paypal. When we have sufficient capital, we will take SLWallet private again so that we can move forward in positioning ourselves to be acquired. In taking SLWallet private, we will pay no less than a 20% premium on current trading prices.
Business Strengths
Our strength is in our Track Record, Numbers, and Diversification.
1) To date, not a single customer has lost money with us. While we are unable to process all withdrawals at this time, we are confident that we will be able to repay all customers money that is owed to them and any interest that they have earned.
2) Once we are able to get through the liquidity crunch, we feel that being one of the few surviving financial institutions will help us acquire more customers since the competition level will be much lower, with a higher barrier to entry.
3) We have many in-world as well as RL businesses that are capable of generating sufficient profits for our investors and shareholders. With multiple businesses in the financial, retail, and service sectors, we feel that SLWallet is well protected from any sudden market changes, including any unforseen LL policy implementations.
Use of Capital
Capital will be used to alleviate the current shortage of capital so that we can rapidly move forward in offering withdrawals.
Risk Factors
While we are confident in our ability to generate a profit from our inworld businesses, there are other outside factors that are beyond our control, mainly any changes in the market environment caused by any new Linden Lab policies.
Management
Business Development and Marketing will be managed by Arbitrage Wise. Day-to-day operations and management will be controlled by our board of directors and management team.
Additional Private Notes
There are currently no treasury shares. As we liquidate our investments, we will use funds to purchase treasury shares.