A Blizzard of Questions Swirl Around Sudden NDX Migration to Ancapistan Capital Exchange

At 3:20pm SLT yesterday Innovative Index Fund (NDX) CEO Travis Ristow announced that NDX would be delisting from the Second Life Capital Exchange (SLCAPEX) and relisting elsewhere.

The press release stated, "Due to recent events and the fact that SLCAPEX mangement no longer feels that NDX is suitable for their exchange because of the amount of ownership that is held by the CEO , coupled with the fact that its primary income comes from outside SL. I hereby Request/ Demand an immediate Trading Halt so that we may remove the company from this exchange without delay."

While Ristow stated that the shareholder list had been downloaded and trading would resume the next day, it was not immediately clear where this relisting would take place. Ristow is also the CEO of the borderline BCX Acquisitions and Mergers (BCXS : ISE), a company that has been the victim of a lack of investor confidence due to lack of shareholder communication.

Gordon Wendt was the first to publicly react, stating, "CEO wants out but shows no reason other than a supposed snub by Slcapex which has not been backed up. CEO only owns (3% in his own company) so has little financial liability if/when he leaves the investors holding the bag. This seems shady at best..."

Intlibber Brautigan and the Ancapital Capital Exchange(ACE) weighed in with their part of the unfolding situation at 8:11pm, releasing a press statement revealing, "NDX CEO Travis Ristow today announced the delisting of NDX from SLCapex. He then contacted us about relisting the company at ACE as Developing Worlds Investment Fund (DWIF) with plans for development in other virtual worlds. DWIF has been relisted and trading is active."

Whether DWIF(ACE) was relisted without paying a fee to the ACE is not currently known.

At 10:20pm SLT Bogart Beck, CEO of SLCAPEX, released a statement affirming, "The management team of NDX has submitted a request for delistment this evening that will be honored effective immediately. Mr. Ristow is entirely correct in his assertion that the management of SL CapEx is not comfortable with the ownership structure nor the going forward business strategy of NDX wherein the company intends to derive its income on a gaming platform OTHER THAN SL - to wit Entropia."

Beck then added, "We recognize that the prior administration here (including myself) and other SL-based Stock Exchanges are/were willing to accept listings of entities that reach beyond Second Life(tm). To be frank both MNM, JTIC and NDX are instances of companies that do or did attempt to reach beyond the boundaries of our simulation and the SL eco-system. Bsed on our experience, honestly, such entities are just too difficult for us to investigate, vet, monitor or self-regulate. As such, based on the advice of our own legal counsel and our desire to remain fully immersed within SL, at minimum until such time as the legislative and regulatory framework, and case law precedents catch up with and are well-tested against the metaverse's status quo. Again, SL CapEx will NOT support company listings that operate based on business strategies that reach beyond SL and the adjacent web-based cottage-industry infrastructure that supports its cause and values. At the moment we have one exception (that being JTIC - which is not a company at all but rather an Investment Certificate that provides no guaranteed return on investment pursuant to LL banking policy). We hope the participants here can understand and appreciate our position. Our desire here is simply to help assure the long-term viability of our platform and sustainability of our simulation. At times such strategic decisions may appear to be heavy-handed and arbitrary; that is not our intent. Please accept that we are acting and operating on what we believe are the best interests of SL CapEx.com and its participants at large."

Immediately it became clear that some strange things had taken place regarding the number of outstanding shares.

When listed on the SLCAPEX NDX had 779,030 outstanding shares and was halted on the SLCAPEX at L$0.41 and relisted at ACE with 1,529,000 shares and opened at L$1.00. At the time of the SLCAPEX halt Ristow owned 5% of NDX. After relisting on ACE he now owns 16.35% of the outstanding shares.

In comparing the "other shareholders" of NDX and DWIF(ACE) there is a 20,000 share increase. Ristow's own shareholding is now set at 250,000, and when these two amounts are added to the original 779,030, brings the total share amount to 1,049,030, which still leaves 480,000 shares that appeared out of nowhere. These shares can be accounted for by noting that second largest shareholder Eliale Morigi's shareholding increased 200,000 from 139,000 shares on the SLCAPEX to 389,000 on the ACE. Largest shareholder Manuela DeVinna's holdings increased 250,000 shares from 149,184 on the SLCAPEX to 399,184 on ACE.

While it is obvious that there was no notification given to shareholders prior to the move by Ristow to migrate NDX to ACE and rechristen the firm DWIF(ACE), it is not known if insiders, including Devinna and Morigi, were consulted prior to the move and compensated with the additional shares. Also the proportional increase in Morigi and Devinna holdings may have been a move to parallel the sythetic increase of shares that resulted from the "free shares" that Ristow bestowed upon himself in the move, preventing desention from the firm's two largest shareholders. Ristow is firmly now the third in shareholding percentage, more than 12% higher than the next highest shareholder and eclipsing their holdings by 195,900 shares.

The DWIF(ACE) forum is not currently open on the ACE forum, which does not allow concerned shareholders to openly discuss the surprising and unexpected move by Ristow or the sudden and unexplainable inflation and dillution of NDX shares.