Last week we announced several updates regarding Otis’s integration with the Public.com platform.
One of these updates was our plan to merge all sneaker assets (excluding any game-worn or signed pairs; for a complete list of included assets, page down to the bottom of this article) into a single collection, and to migrate this new collection to the Public platform. More specifically:
- Shareholders of any of these assets, as of the date we pause trading for assets migrating to Public (exact date TBA, but likely in August), will receive shares in this new, merged collection proportional in value to their existing holdings, based on our Fair Market Value (“FMV”) calculations for each asset.
- We expect there to be no tax implications for shareholders on account of this merging of assets.
- Given that this new merged collection requires an updated filing with the SEC, we do expect there to be some additional delays between when trading of sneaker assets is paused on Otis and when it reopens on Public; exact timing to follow.
Today, we’re sharing our preliminary FMV calculations for all the aforementioned sneaker assets, which will be used to assess the value both of the overall merged sneaker collection as well as of the value assigned to each individual offering within the collection.
In calculating these FMVs, we chose to look at the current market value of each asset on the external market rather than market cap on Otis. Given the low trading volume for some Otis assets, market caps sometimes fluctuate greatly and can be moved by a trade of a handful of shares. Specifically we used the following criterion:
- For each pair of sneakers, we looked at most recent sales across StockX, Heritage Auctions, Sotheby’s, and Christie’s (with a cutoff date of June 30, 2022).
- We only looked at sneakers sizes 9-13, as these are the most desirable sizes and virtually all the sneakers across Otis sneaker assets fall into these sizes.
- Where no public sales sizes 9-13 were available, we allowed sales sizes as low as 8 and as high as 14 (this only came into play a single time).
- Where no public sales across all sizes were available, we calculated FMV using our acquisition price.
While we feel confident in our methodology, in the spirit of transparency, we wanted to publicly share our FMV calculations and data in the unlikely case that there were relevant public sales we missed. To that end, if you have any feedback regarding our FMV calculations, please email us at alts@public.com.
We plan to finalize our FMVs, including any missing sales data, on Tuesday 7/12 at 5pm ET, so please send your feedback prior to that time.
Complete list of merging sneaker assets:
