View Prospectus
General Details
Company: Delicious Skins (DSE)Outstanding Shares: 5,000,000
Company Website:
Board of Directors
Chief Executive Officer: Delicious DemarDirector: Jackie Debs
Director: Anna Andalso
Chief Operating Officer: Rob Faulkner
Lead Design Consultant: Ayesha Bisiani
Prospectus
CEO's Real Life Name: MariaCEO's Real Life Location: Toronto, Canada
Cash on Hand: L$500,000.00
Land Owned: 32,768m2
Land Value: L$15.00/m2
Net Tangible Assets: L$991,520.00
Monthly Income: L$0.00
Monthly Expenses: L$0.00
Chairman's Letter
To Potential InvestorsThank you for your interest in Delicious Skins, my new venture in Second Life. As the CEO of Delicious Demar Enterprises (DDE on the WSE), I have built successful businesses in SL in the real estate sales and rentals, clothing & furniture design, and casino operations.
Delicious Skins is a bold new venture, aimed at creating a brand new line of high-end skins for women, which is a large and growing market in SL. With skins often selling for 2,000L each, and the relatively low number of really quality skin designers, this market is ripe for a new talent to capture a significant share of the market. Potential monthly revenues, selling just a few skins a day, are 150,000 - 300,000L.
I am seeking the venture capital required to design and market these skins. The hallmark of Delicious Skins will be superb quality. I am looking to design and sell the most exquisite skins in SL. With the help of forward thinking investors, I will oversee the development of a whole new line of skins in SL, based out of the 1/2 sim recently purchased for this endeavour.
People who have invested in my business ventures, or have done business with me, know that I am driven, hardworking, and have a knack for turning a profit. I invite you to invest in someone with a proven track record of business success in SL, and support the launch of Delicious Skins.
As with DDE, I am committed to rewarding investors, and will provide dividends of at least 20% of net income each week.
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FOLLOW UP LETTER: April 11, 2007
Open Letter to Potential DSE Investors
Submitted by: Delicious Skins (DSE)
Date: April 11, 2007
It has come to my attention that there are some questions among potential investors regarding the IPO for Delicious Skins (DSE). Let me apologize in advance for the length of this message, but the space is required to provide a cogent explanation. In particular, I have received questions about the following:
1.Why did you create 5,000,000 shares and only offer 1,000,000 in the IPO?
2.Why do you need 1,000,000 m Lindens anyway?
3.Why do you need a whole island to sell skins?
Finally, there has been some speculation that I have just become greedy, and am trying to make a quick buck from a new IPO. In order to keep investors informed, I wanted to provide some of the rationale for the way the IPO has been released, and some further details about the plan for Delicious Skins.
Let me address the last first. People who have met me or done business with me know that greed is rarely a motivating factor for me, except for the occasional poker hand where I slow play to try to maximize the pot (and often lose on the river....rofl). I see making a successful business as a challenge, and have spent the last year in SL building a solid foundation of success, based on hard work and having the courage of my convictions. While others used the WSE as a method of grabbing some quick cash, and then essentially disappearing, I have continued to pour all of my earnings back into my businesses. I have treated my DDE listing on WSE very seriously, paying attention to investors' advice and desires, and putting more of my DDE net income into dividends (per share) that any other single company on the exchange. I strive to be transparent and ethical in order to show my investors that I respect the fact that they have given their hard earned Lindens to me to grow. Delicious Skins will be no different. I have a solid business plan and believe that the market for high quality skins is am excellent opportunity.
1)Why so many shares? I looked at the other companies with IPO's on the WSE, and found that the number of shares offered seems to average at about 20% of total shares created. Yes, there are some (like DDE) that put 50% of it's shares in the offering, but many more that put as little as 1% of shares for sale. So, I created 5m shares and put 1m in the IPO. It has never been my intention to sell the shares I have in reserve – it makes no business or financial sense to dilute the share price in this way. However, because i will hold 80% of shares, the yield for investors will be lower. Therefore, and in order to be in line with the precedent set by DDE of providing 20% of profits in the form of dividends to shareholders, I will double the yield to 40% of net income to be disbursed as dividends on a weekly basis. The math is as follows:
DDE
Shares held by me in DDE: 60%
Shares held by others: 40%
Profits disbursed as dividends: 20%
Yield: other investors (as % of profits): 8%
DSE
Shares held by me in DSE: 80%
Shares held by others: 20%
Profits disbursed as dividends: 40%
Yield: other investors(as % of profits): 8%
2)Why 1,000,000 Lindens? When i investigated the art and science of making skins in SL, it quickly became apparent to me that though I have decent skills with designing textures, skin design is a particularly difficult and tricky proposition, requiring literally hundreds of hours to complete a full line of skins. In order to ensure the high quality I am am seeking, I will clearly need to hire an excellent graphic artist to design the skin textures for me. This will require RL levels of money – no-one with that level of skill will design a line of skins, and turn over ownership to me, for a few hundred dollars in real money. I have estimated that more than half the capital raised by the DSE IPO will be required for one-time payment to a graphic artist to design the skins. The second major cost will be the creation of a flagship store and custom vendors to sell the skins from. It has become clear to me that discerning shoppers pay a great deal of attention to the professionalism and sophistication of the store from which high priced items are being sold. All of the high-end skin sellers in SL have a dedicated store from which to sell, creating the right retail environment for high sales. Although I will investigate the desirability of creating a greater presence in SL through the use of satellite stores and vendors, the creation of a solid brand and location will be key to our success.
3)Why a whole island? Well, to be honest, this I am not sure about. I wanted to be transparent in the IPO about the possibility of requiring more land, and hence mentioned the acquisition of more land, as required. The main issue here is lag. With the current state of SL, lag is always a problem, and the if the flagship store is able to generate high levels of traffic, together with the high use of different textures and some scripts, lag could well become an issue in a smaller or undedicated environment. Again, having researched this, I have noted that successful retail stores almost always relocate to a dedicated island after they have become popular and start turning a profit. However, they then lose much of the repeat business of people teleporting to the old landmark that came with their products. I am hoping that DSE can operate from one location from the beginning, one that provides the ability to expand if necessary.
I invite investors to IM me with questions or concerns, and my sincere thanks to those that have already provided me with feedback. Once again, my apologies for the novel-length message. I only want to reiterate my commitment to conducting business seriously and ethically, as these have been the hallmark of any success I have had to date.
Delicious Demar
Business Overview
Selling skins in Second Life is itself an art. The key to a successful line of skins is having a superb base skin, and designing a wide variety of options like skin tone and make-up options. Typically, a line of skins will have at least 50 of these options, and often more, sold singly and or bundles that provide flexibility for the SL woman wanting to look sexy and sophisticated.Delicious Skins will engage the talents both of its founder, Delicious Demar, and top quality graphic artists in Second Life to design impeccable, sexy, exquisite skins for women.
Presentation for sale is almost equally important - the store and vendors need to be upscale and modern, easy to understand and use. Delicious Skins has acquired a 1/2 sim for the launch of Delicious skins, ensuring minimum lag and an excellent shopping experience.
Business Strategy
see Business OverviewBusiness Strengths
see Business overviewMarket Overview
Currently in Second Life, there are many skin sellers, but only a handful that are acknowledged to produce top quality skins. Such names as X2, naughty Designs, and Celestial have produced excellent products and provide women with at least some choice in skins.However, with the huge influx of new accounts, and the incredible difficulty of producing excellent quality products, there is a real opportunity for a new line of skins, with the correct marketing and promotion, to capture a significant share of this fast growing market.
Use of Capital
Capital raised through this IPO will fund the following:- additional land, as required
- hiring of graphic designer(s) to assist with the production of these skins
- a full marketing plan and advertising campaign to signal the launch of Delicious Skins