In our last update, we indicated that we would wait until November to make a decision on the future of the mine. Since then we have spoken to a number of investors and while there have been some mixed responses, we have not seen price or difficulty adjustments that merit attempting to continue operations. Accordingly, the Board of Managers has decided unanimously that it is in the best interest of the Company and Members to recommend dissolution and liquidation of the Company. Under the Operating Agreement for the Company, a majority interest vote or written consent of Membership Shares (including management-Member Shares and investor-Member Shares) is required to dissolve and liquidate the Company. In the coming weeks, the Managers will prepare and provide the Members with a formal Plan of Dissolution and Liquidation, Accompanying Financial Information and a Member Ballot for Vote on Dissolution and Liquidation. The Managers will recommend all Members vote IN FAVOR of the Plan of Dissolution and Liquidation.
In the meantime, in order to preserve Company assets and reduce costs and expenses in anticipation of the dissolution and liquidation, we have been going up to the cave on weekends and disassembling the rigs. We have also been selling refurbished cards on eBay. They have been moving very slowly at the prices we desire. We have a completed inventory and should be able to estimate the liquidation value in short order. Given the extent of the equipment that we still need to liquidate, for time and expense saving sake (e.g. wrapping up the fund in 2020), we are exploring possibilities for an “all assets” liquidation.
Having decided to forego the expense of monthly financials (particularly when there is not much activity given the mine’s shut off), we will have year-end statements in preparation for taxes in February.
Our landlord has been very difficult to work with. Despite that we are current on rent and took the electricity account in our name, they have yet to return our $25,000 deposit. We anticipate getting our legal counsel, Patrick Sughroue, involved if they do not voluntarily remit the deposit or fail to respond.
We would like to apologize for our delays in communication. Largely, there has not been much news to impart to Members given the glacial pace of the operations slowdown and beginning of the orderly liquidation process. This entire venture has unfortunately gone in largely the opposite direction of what we all anticipated and hoped for.
Our next communication will be regarding the formal Plan and Ballot for Dissolution and Liquidation.
Pending this communication, if you have any comments or questions, please email the Managers.