Eurasian Holdings is a startup incubator created in 2004 at the request of a group of investors who owned shares in various problem startups, and who were seeking ideas on how to restructure their shareholdings. It was decided to use their problem shares to seed a new holding company called Eurasian Holdings Inc, and gradually add new startups while disengaging from the original problem shareholdings. Subsequent liquidity for shareholders would come from private sales of the shares, by listing on a small-cap exchange, by dividending assets to interested shareholders, or in exchange for consulting and other services done by the company. The company's initial areas of development would be as follows:
- Real estate projects related to health and fitness
- Luminescent products for architectural, safety, camping and sports applications
- Alpine organic herbals for health teas and drinks
- Low-cost easy health and fitness concepts for the public and for organizations
Company name, locations, and shareholders
The company name comes from its first projects which were in China, Korea, Turkey, Lebanon and Europe. The company was incorporated in the USA so that it could be listed on a US small-cap stock exchange later. The company works out of Denver Colorado and Geneva Switzerland. Shareholders are mostly from Germany, Italy, UK, Balkans, and USA.
By 2007, several products were developed and launched. These included Curtisium™ luminescent products, Argekim™ luminescent paints, and Alpfactory™ organic alpine herbals. In real estate, options in health-center projects were negotiated in France (a mountain health center property rebuild with views over Lake Geneva, the Alps and Mont Blanc), Switzerland (a wellness center in Verbier), and Lebanon (a large new sport and wellness center with spectacular views over Beirut and the Mediterranean).
The financial and real estate crisis of 2008 happened just when the company's initial funds had all been invested in product development but before regular sales had enough time to develop. Due to the crisis, further early-stage funding became impossible to find. With worldwide real estate hit by the sub-prime meltdown, the potential real estate projects became embroiled in litigation, obliging us to terminate them and cancel the shares that had been issued. At the same time, our herbals and luminescence businesses were dividended to two majority shareholder groups at their request. These changes left the company with no ongoing activities. The company therefore started work on developing the other potential startup ideas identified in the original business plan, especially those where little or no investment was required. These included Breakpad™ inflatable safety floors for sports and martial arts (originally called Fast Football Flooring), and FitChat™, Rolo™, IronButt™, Steppe™ and StreetMoves™ social exercising concepts). To free up cash for development of these businesses, small passive shareholdings were sold (in USA: Lumitec and Kolorfusion, and in China: Forlink, Jade, and Pacific Alliance). The Breakpad™ inflatable safety floor product, developed in South Korea, works perfectly but its price is too high, so we have discontinued it for now. The public exercise projects are grouped under the brand-name fifteening.com.
With no further need for its initial costly holding structure, the company re-incorporated in 2013. The share certificates, the name, the board, and the office remained the same. All affiliate entities were closed. The large reserve of shares originally earmarked for real estate options was cancelled, allowing the number of authorized shares to be reduced from 100m to 10m. The nominal share value was increased to $0.10 per share. Fewer than 3m public shares now remain, held by less than 1,000 shareholders.
Buying and selling company shares
The company's original business model included a US small-cap share listing (quotation) which would have created a public market for the shares, but changes in US accounting and regulatory practices due to the financial crisis and the Enron case made the shares of small holding companies prohibitively expensive to list. Brokerage firms would no longer sponsor such share listings unless they were backed by large private equity or venture capital funds. Because of this, the only alternative to a direct listing became a merger into an inactive already-listed company. However, demand for such inactive already-listed companies had recently been boosted by cash-flush new buyers from China seeking a quick US listing as part of their international image. As a result, prices of such inactive already-listed companies rose far above the levels allowed by our business model, therefore closing this possible route to liquidity. As an alternative, we discussed with European and Asian small-cap stock exchanges, but due to the financial crisis all of them were introducing new requirements of minimum capital or several years' existence and profitability before accepting a company's request to list its shares, essentially closing the stock market route to small companies not funded by large private equity or venture capital groups. As an alternate way of creating share liquidity, Eurasian started a program where shareholders could buy or sell their shares privately. Shareholders indicate their wish to buy or sell a block of shares, and at which price limit. Offers are made to these shareholders by buyers and sellers from time to time. A considerable number of shares has already changed hands in this way or by shareholders buying or selling directly themselves.