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Rumors about Star Citizen’s financials sprouted during the weekend after a NeoGAF member posted filings from the UK Companies House offering new insight on Cloud Imperium’s activity. The implication was that the company applied for a significant loan and offered up everything they had in the process: the Star Citizen IP, all assets, all code, and distribution rights. CI has clarified that this was just a “regular advance” for tax credit rebate purposes - but not everyone seems to be convinced.
In other words, Cloud Imperium will take a loan to obtain money from a UK tax rebate for game companies early. Cloud Imperium will take the loan money now and when the tax rebate comes in, it will go to the bank. The catch here is that Cloud Imperium will pay in GBP. As such, and given the fact that its collections are mostly in USD and EUR, if GBP drops below current currency levels, Cloud Imperium will pay less. And to be honest, that’s a really smart business move.
In other words, Cloud Imperium will take a loan to obtain money from a UK tax rebate for game companies early. Cloud Imperium will take the loan money now and when the tax rebate comes in, it will go to the bank. The catch here is that Cloud Imperium will pay in GBP. As such, and given the fact that its collections are mostly in USD and EUR, if GBP drops below current currency levels, Cloud Imperium will pay less. And to be honest, that’s a really smart business move.