LOS ANGELES--(BUSINESS WIRE)--aShareX, Inc. (Art Share Exchange), the first and only auction-based universal trading platform dedicated to democratizing ownership of high-value alternative assets, announced it will launch this summer. The online exchange features transparent market-based pricing, investor control over asset disposition, and lower costs than other intermediary platforms.
“We take an investor-centric approach. Investors decide how much to invest at a market-determined price and control the timing of the asset’s sale. By combining direct control with lower costs of ownership, our system generates a compelling opportunity for investors.”
The patent-pending auction system enables fractional bidders – individuals or institutions bidding for partial ownership of an asset – to compete against each other as well as against bidders who desire 100% ownership of the asset. Fractional bids are aggregated into single bids that compete with 100% bids in a traditional auction format. When fractional bidders win an auction, they will be issued securities in an SEC-qualified Regulation A offering representing their ownership interests in the underlying asset. When a 100% bidder wins, they take possession of the asset with no securities issued.
“Fractional investing is the future of finance,” said Alan Snyder, founder and CEO of aShareX and also founder of Answer Financial, one of the largest online insurance marketplaces in the U.S., now owned by Allstate. “We take an investor-centric approach. Investors decide how much to invest at a market-determined price and control the timing of the asset’s sale. By combining direct control with lower costs of ownership, our system generates a compelling opportunity for investors.”
The aShareX platform plans to launch with auctions of blue-chip art, a $1.7 trillion market that enjoys $65 billion-plus in annual turnover according to art market research firm ArtTactic, and returns of 8.5% annually since 1950 as reported by Sotheby’s Mei Moses Index. As many investors look towards tangible assets as potential hedges against inflation, fine art’s strong historical performance and low correlation to traditional investments has drawn particular attention in recent years.
“aShareX empowers self-directed investors to control their own destinies. We aren’t a biased intermediary that dictates at what price an asset should be purchased or when it should be sold. Rather, we provide investors with the information necessary for making better decisions. With us, they can continue to use current financial advisors without incurring duplicative costs,” Snyder added.
aShareX allows institutional investors unlikely to buy and maintain the physical asset the opportunity to purchase a security that controls the underlying asset at market prices. At last, pension plans, foundations and endowments with this execution can reap the same benefits as other investors in a way that fits how they invest.
“This is a game-changer for institutions seeking uncorrelated alternative investment vehicles,” noted Leslie Wright, Chairman North America at Bonhams.
Building on its care for investors, aShareX has created Test Drive an AuctionTM, a gamified version of its auction system that allows prospective bidders to hone their auction skills against hundreds of computer-generated bidders in a risk-free environment. It is available now at www.asharex.com. Research shows many participants in traditional auctions are uncomfortable with the format. When buying a car, most test drive it first. Now, people can test drive an auction and develop bidding strategies that apply not only to aShareX, but to any auction. With Test Drive an AuctionTM, a participant can experiment as a fractional or 100% bidder in this real-time simulated auction to deliver knowledgeable confidence when engaging in a live auction with actual money.
After two years in development, aShareX is in partnership discussions with global auction houses interested in leveraging the platform to attract a large new cohort of buyers into their auctions. There is also significant interest from companies engaged in collectibles, precious gems, gaming, and real estate, seeking to license the aShareX execution as a SaaS integration.
Snyder concluded, “Our highly experienced executive team has built an industrial-strength execution that intends to address SEC requirements, including two FINRA-registered Broker-Dealers for the primary auction and secondary trading platform, a custodian, and an SEC-registered transfer agent.”
How aShareX Works
Investing is simple:
- Interested individuals, businesses, trusts and institutional investors complete an online registration process.
- Fractional and 100% bidders participate in auctions via the online aShareX platform, with minimum fractional investments of $5,000. 100% bidders can also participate in-person or by phone.
- When fractional bidders win an auction, shares in the underlying asset are issued to the winners and aShareX stores, insures and maintains the asset in a professional secured storage facility or museum. When a 100% bidder wins, aShareX coordinates collection or delivery of the asset with the winner.
- aShareX will facilitate a secondary market for the buying and selling of fractional shares, providing a convenient way for fractional investors to potentially access liquidity without needing an outright sale of the underlying asset.
- Fractional investors vote (by simple majority based upon number of shares held) to determine whether they want to sell the underlying asset.
The first aShareX auction will be announced in the coming months subject to completion of regulatory requirements. For more information and to register an account, please visit www.asharex.com.
About aShareX
aShareX, Inc. (Art Share Exchange) is the first and only low-cost marketplace for buying and selling fractional shares of high-value assets that features market pricing and investor control, with an initial focus on democratizing ownership of blue-chip fine art. The patent-pending auction system allows, for the first time, fractional bidders to compete against one another and against 100% bidders in an integrated back office and secondary trading platform. aShareX benefits from an experienced and dedicated team with a proven track record of building innovative companies and products, including seven years’ experience lending against museum-quality physical fine art.
Legal Disclaimer
This press release shall not constitute an offer to sell, the solicitation of an offer to buy, or a solicitation of interest in any contemplated offering of, securities, nor shall there be any offer or sale of securities in any state or jurisdiction in which such offer or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. None of the information in this press release should be construed as a recommendation or as investment, financial, tax or legal advice.
aShareX has not yet qualified with the SEC any offers or sales of fractional shares, and there is no guarantee that any such offer will be qualified. Any offering of securities will be made only by means of a duly qualified offering circular, which can be obtained by qualified investors through our platform. Information about our offerings must be read in conjunction with such offering circular in order to understand fully all of the implications and risks of the offering of securities to which it relates.
This press release contains forward-looking statements, which include, but are not limited to, statements concerning the Company and its plans and projections, whether express or implied. You should not rely upon forward-looking statements as predictions of future events. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, as more fully described in an offering circular. In light of such risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Past performance is no guarantee of future results.
Contacts
Media Contact:
Wes Robinson
310.824.9000
wrobinson@olmsteadwilliams.com
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