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Buyout Offer: 1985 Air Jordan 1s (Second Offer)

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Buyout Offer: 1985 Air Jordan 1s (Second Offer)
January 12, 2022
Claire Zhang

The Shoes

‍The Nike Air Jordan 1 is the sneaker that started it all. Originally released in 1985 as MJ’s first signature sneaker, the Air Jordan 1 helped pave the way for the most popular sneaker franchise of all time. This collection includes 5 of the original colorways produced in 1985, preserved in brand new condition.


The Offer

‍$72,000, which would net investors $72.15/ share, representing a 118.6% gain to the Drop Value ($33,000 or $33.00 / share) and 73.9% premium to the market cap at trading pause on 1/11/22 ($41,500 or $41.50 / share).

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Previously, a buyout offer of $66,861 was declined by 61.6% of shareholders (share weighted) in October 2021.


Recent Sales

We looked at public purchase data found between StockX and Sotheby's. The sum of most recent sales for these shoes would suggest a fair market value of $70,481.

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However, due to the scarcity of deadstock pairs of these shoes (which are 36 years old), there are few recent comparable sales (only 2 of the 5 shoes had comparable sales in 2021). Consequently, basing current FMV on most recent sales may not be entirely accurate.

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StockX + Sotheby's Last Sale Links:

Bred: $15,120 on 9/30/20

Royal: $16,461 on 1/25/21

Chicago: $20,000 on 8/10/21

Neutral Grey: $6,930 on 12/3/20

Black/White: $11,970 on 12/3/20



Submit Counteroffer: Open the asset in the app to submit your offer.


Join the Conversation: Chat with other Otis members about this offer on Discord.


Trading has been placed on hold pending investor feedback related to the offer. We asked shareholders to provide feedback by Sunday 1/16/21 at 5 PM ET.

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The Otis team will approve or reject the offer based on a number of factors, including shareholder vote, recent sales, and trading price on Otis. If the buyout is approved, investors will be eligible to receive a payout into their Otis cash account once the transaction is finalized.

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UPDATE (1/19/22):

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The Otis team made the decision to remove this buyout offer from consideration.

Over the weekend, the Otis team was made aware of a recent sale at Heritage Auctions for one of the pairs of sneakers in the collection. This sale was at a significant premium to the comp used in our own FMV analysis. This recent sale would suggest a revised Fair Market Value of at least $87,761 for the collection.

Based on this new data point, the proposed buyout no longer meets our standards for a reasonable offer, and the Otis team has made the decision to remove the offer from consideration. The buyer declined to make an offer that exceeded our new, higher threshold.

The asset will re-open for trading tomorrow, January 20, at market open.

Buyouts

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Buyout Offer: 1985 Air Jordan 1s
January 12, 2022
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