How do VIP Auctions work?
During the VIP Auction period, participants can make non-binding bids on a fractional share of the royalty stream. The number of royalty share units available will vary for each auction. Once all units have sold out at a certain price, it will automatically increase by $1 and allow for more bids on the total number of SongShares. This will repeat with price increasing until time runs out and more bids are made.
Bidders can place either HARD bids or PROXY bids. HARD bids are immediate bids at the current price for a specific number of units.A PROXY bid is when you set a maximum price and the system will automatically bid for you if the price increases. SongVest’s auction platform shows bidders the current price and bid status, and then will notify if they are outbid.
When the VIP Auction is over, the price will be set at the highest amount achieved when all were SOLD OUT. If only half of the units were sold at $26, then the final set price would be $25 per share. After the auction and SEC qualification, all participants with successful bids of SongShares will have the option to purchase the units before the general public offering!
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What happens at the close of a VIP Auction?
SongVest uses the Five Minute Rule for auctions, whereby if a bid is placed in the final five minutes of an auction the listing will stay open for an additional five minutes. There is no limit to the number of times an auction can be extended. Soso ...
What is a VIP Auction?
For each offering (or auction), SongVest holds a non-binding VIP ("Verify Interest of Participation") Auction with potential investors. It is referred to as a "Test The Waters" auction under Tier 2 of Regulation A of the Securities Act and the ...
What happens during a VIP Sale or a Public Sale?
After a VIP Auction is complete, participants who had a winning bid at the close will have the first opportunity to buy their SongShares at the price set during a VIP Sale. These bidders can purchase UP TO the number of shares they had as part of ...
What Happens if I Win a VIP Auction?
If you have a successful bid at the end of the VIP Auction, you will have the option to purchase those SongShares during the VIP Sale before the general public, and after the offering qualified by the SEC. You may purchase up to as many royalty ...
Can I sell only a portion of my royalty revenue?
This is totally up to you! You can sell any percentage of your royalty stream. The options are almost limitless! SongVest will work with you on your ideal auction and how best to present your royalties.