A DEEPER LOOK AT THE P7 COIN PROGRAM
P7 Coins are our way of making sure that absolutely anyone who loves Pioneertown can be a part of this project!
These will be the only investment options available to the public right from the start. They won't grant the owner any voting rights or rights to traditional dividends.
Selling these P4 Coins will help us generate funding for the project, it will help us advertise the project and it will allow anyone, including tourists, to help the project for as little as $1!
The $1 P7 Coins will likely be sold mainly to people not interested in a future P4 membership and therefore the majority of these coins won't be redeemed. That means that the majority of the $1 P7 Coins that we sell equates to a direct profit.
The $1o P7 Coins will likely be sold mainly to people looking to make a small investment with a guaranteed return. All of these coins will likely be sold back to P4. While that doesn't mean much direct profit, it still allows P4 to borrow a sizeable amount of startup capital while keeping our voting rights secured and allowing the general public to participate.
There are very few laws that regulate what a corporation can offer as far as coins or tokens are concerned. If someone wants to offer coins or tokens that are only good for their business, they have every right to do so. There is no law that prohibits an arcade from printing a million $1 game tokens and selling them all. The $1 P7 Coins are very similar to a Chuck E. Cheese Token.
P4 will make $1o P7 Coins and sell them at face value. But P4 will buy them back during specific dates for a specific price. In this case, P4 is basically offering promissory notes in coin form.
- These are essentially IOU’s. Small Individual loans.
- They are not Promissory Notes or Share Tokens.
- They are not Stock Shares, as they provide no voting rights or claim to any percentage of P4.
- They are not Corporate Bonds, as their face value is well below $1,ooo.
- If they were Bonds, they could only be considered “Bearer Bonds”, as the coin is actually a tangible document that one can physically possess (much like old stock & bond certificates), or “Zero-Coupon Bonds”, as they offer no interest payments until the bond matures.
- They might classify as a “surety bond”, if it involves more than two parties: for example, P4, the coin owner and a business in Pioneertown – in this case, the General Mercantile.
- Furthermore, they wouldn’t qualify for California’s Private Placement Policy, which, among other things, states that bonds can only be issued in minimum denominations of $25o,ooo.
