BUY OUT OFFER REJECTED
Ezra Levine is the CEO of Collectable
We are writing to update you on the results of the 48-hour shareholder survey following the buyout offer on our Sidney Crosby | The Cup RC BGS 9.5 and BGS 9.
As you know, Collectable received an offer to acquire our Sidney Crosby | The Cup RC BGS 9.5 and BGS 9 for $200,000. The asset was offered on Collectable on April 9, 2021 for $207,000 ($10/share). The asset has been trading on Collectable’s secondary market and closed Tuesday at $161,460 ($7.80/share), down 22% since IPO.
Inclusive of Collectable’s equity interests in the offering and broker-dealer transaction fees, Collectable would return approximately $9.37 net price per share, if shareholders accept the offer. This represents a -6.2% return over the IPO price ($10/share) and a 20.13% net premium over last traded price on Collectable’s secondary market ($10/Share).
On a share weighted basis, 68% decided to REJECT the buyout offer. As a result, we passed the acquisition offer to our advisory committee for review.
In a 5-0 vote, our advisory committee voted to reject the offer. Their vote was guided primarily by shareholder sentiment.
With support from both a majority of the shareholders and advisory committee, Collectable has agreed to reject the buyer’s offer for the underlying asset for $200,000.
The asset will continue trading on Collectable’s secondary market.
All the best,