We actively take buyout offers on our assets on Otis!

How do buyouts work for investors?

If we receive an offer to purchase the item at a significant premium, we will empower shareholders with a vote on the offer. Anyone can submit a tender offer to buy out an asset. We will review and consider if it’s at a premium above both the current market cap on Otis and recent sales of the same item in the market.

Votes will be weighted pro-rata and require a minimum participation of 50% of shares voting in order for a buyout to be approved.

During the voting, anyone can submit a counteroffer. You can submit a buyout offer directly through the app (more details on exactly how to do this can be found at the bottom of this article) See an example of this here and the outcome here.

We also post summaries about buyout offers on our blog.

How do buyouts work for buyers?

  1. Anyone can submit a buyout offer on Otis:

    • Once we receive a buyout offer, our team will calculate an Otis Estimate based on Recent Sales (public and private), what the asset for is trading on Otis, and expert opinions on pricing.

    • If we receive an offer to purchase the item at a significant premium, we will empower shareholders with a vote on the offer.

    • Note: If we receive an offer below the Otis Estimate, we will reject the Buyout Offer. There is also a high chance that our investors will reject an offer that is not at a significant premium.

  2. Once we accept a Buyout Offer, we will reach out to the buyer to conduct the following:

    • Sign a purchase agreement

    • Wire funds to Otis (which will be returned if the buyout offer is rejected)

  3. From there, we will share the Buyout Offer publicly with our community.

    • Shareholders will have 72 hours to vote yes/no on the buyout offer.

    • At the same time, we will accept any counter-offers made, should someone from inside or outside our community wish to offer a higher price.

    • If a higher offer is made, we will allow the offering parties to bid against one another until the last day:

      • First 48 Hours: Otis will accept counteroffers (to buy at a given price, not an auction bid).

      • Last Day: Only final and best offers will be accepted until the 5pm EST cutoff.

    • Should this bidding result in a substantially higher “final” offer, we will communicate this increased offer to shareholders during the voting period.

  4. If a Buyout Offer is accepted then our team will coordinate the following for the Buyer:

    • Final invoice (which includes the shipping cost)

    • Shipping to the Buyer

    • Confirm receipt

  5. Enjoy your new asset!

Submitting an Offer

If you would like to submit an offer, you can do so directly through the app. In order to submit an offer, click on the asset you wish to bid on. Scroll down the asset page & you should see a button (pictured below) where you can submit a buyout offer.

If you have any questions about how Otis works or your Otis account, please don't hesitate to give our support team a shout on the app or via email at [email protected].

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