BUY OUT OFFER ACCEPTED
Ezra Levine is the CEO of Collectable
We are writing to update you on Series #MahomesRookie. As you know, we conducted a pro-rated shareholder vote after receiving an acquisition offer for $170,000. On a share weighted basis, 68% voted in favor of selling. As a result, we passed the acquisition offer to our advisory committee for review.
While our advisory committee was deliberating, the potential buyer increased their offer to $182,500 —representing a 35.13% premium over the initial offer price on October 15th, 2020.
In a 3-2 vote, our advisory committee voted to accept the offer. Their vote was guided primarily by shareholder sentiment and comparative valuations. Some of the committee members pointed to a recent sale of a 2017 Panini Flawless Emerald Patrick Mahomes RPA /5 PSA 9 which sold for $35,200 in October 2020 to suggest this was a strong offer for shareholders.
With support from both a majority of the shareholders and advisory committee, Collectable has agreed to accept the buyer’s offer for the underlying asset in the Series #MahomesRookie for $182,500.
A return of 34.8% from October 15th to November 25th beats out traditional assets like the S&P 500 (+5.1%), Russell 2000 (+14.0%), and Gold (-4.8%), and only trails cryptocurrency, Bitcoin (+63.8%).
Shareholders will receive a payout out of $20.04 per share, after accounting for Collectable’s equity interests and mandatory purchase in the offering. This represents a 33.6% return in just one month.
To our shareholders who did not vote in favor of the acquisition, we understand you may be frustrated. At Collectable, our mission from day one has been to democratize access to iconic and historic pieces of sports memorabilia. In building this mission-driven vision, we want our shareholders to be able to express their opinions. In this case, we felt that the results of the voting majority best expressed our investors wishes. We promise to continue to bring the best-in-class items to market and hope you continue to join us on our journey.
With an accepted offer, shares in the Series #MahomesRookie will be retired and pay-outs will be made pro-rata based on your share count. Please note, no personal tax withholdings will be deducted from your payout. Profits generated from the sale will be recorded on your K1 statement, which will be issued in time for you to reflect these gains in your 2020 tax returns. Please allow 10 business days for the funds to be distributed.
All the best,