Hey /biz/
I recently introduced a financier friend of mine to a company I had some minor dealings with. This relationship has since resulted in a 12.5 million dollar IPO.
I have been offered 250,000 Share options at 0.001/share as a finders fee. Stock will open at roughly 16c a share, but is expected to rise to 90c within the opening week due to several announcements.
Have I been ripped off, or is this equitable?
Am I being ripped off?
Stuff doesn't add up. Talk to a lawyer and an investment advisor.
I don't usually recommend talking to investment advisors but for this type of thing I think it's sensible.
>>1382948
This. It might cost you $200-400 hour, but this is a 12 FUCKING MILLION DOLLAR IPO.
so $250 finders fee
becomes $1406.25 equity in a week pending an >500%
Tell them you'll see them in court and walk out of the room cackling.
>Am I being ripped off?
You are lucky they are giving you anything. You should have negotiated your finder's fee before you hooked up your friend.
Being bitter post factum is childish.
>>1382960
Not posting bitter. I was just helping out the business at this point for a 100k cash injection. The relationship went far further than I expected. All in all, I did an hours work and stand to make money. Sure, maybe its far less than what I would be paid if this were my usual line of work, but I have no real understanding of how a commission like this works. I figure I'm probably being given less than a normal amount, because I have no idea how to argue my worth in this situation. The thing is, other clients of mine are now asking for introductions, and I'd like to know how to profit from this.
>>1382945
250,000 shares multiplied by the 0.001/share fee is equal to $250. That's what you'll pay for the options.
250,000 shares multiplied by the $0.16/share expected issue price will equal $40,000. You're netting $39,750 for doing not shit. Be thankful nigger.
>>1382955
Check your math dude holy shit. How are you this bad at basic multiplication and spreads?
>>1382945
What's your offering size?
If you close at opening price (which will not happen unless things go VERY badly), you earn $39,750. At 90c, you'll earn $224,750.
Which is pretty fucking good. Wtf? I'm assuming you weren't involved in the actual execution from what you've said.
The other anon is right. At this point it's too late to ask for much more, especially since you only had minor dealings with the company. I wouldn't do this personally, but MAYBE you could push for a little more with a smile.
You haven't done anything. Just take their offer and stay cool with them.
>>1382945
sounds like a scam, who in their right mind is going to hand out free money? The fact that youre even asking this question already shows your doubts.
I bet that the scam is: The person goes home, thinks about it, realizes he hit the jackpot and *ASKS* to buy more than 250,000 shares, guy puts on an act, says ok, you lose your money
>>1382955
Behold! The typical /Biz/.
OP, 40 grand is good money for a bit of good luck. Don't get greedy. If you didn't actually do anywork in regards to the IPO and just referred someone to someone else, then just be happy with the 40 grand that could possibly be 200..
It sounds like OP just wants to know what this kind of service is worth, because he has other people asking him to do it. He doesn't seem to be complaining about the free $200k, just trying to figure out if he should charge more for the "work" in the future.
