WHAT IS A SINGLE-UNIT AUCTION? A single-unit auction is an auction where only one whole investment asset is made available. Buyers can only place bids for the whole asset and there can be only one winner of the auction. Winning bids are binding legal contracts with the seller.
WHAT IS A MULTI-UNIT AUCTION? A multi-unit auction is an auction where an investment asset is securitized or broken up into multiple units allowing buyers to buy a small or large amount of that asset. Many buyers can win in this auction however, each auction has a cap of 100 buyers.
Bids are solely in terms of price and quantity. Your bid will be accepted by Royalty Exchange at closing only after your accredited investor status has been verified.
CAN I OWN IT INSTEAD OF BUYING A SECURITY? Yes. If you are the winning bidder of all the units (100%) in a securitized multi unit auction, then you may request to buy the asset directly, without it being securitized. Royalty Exchange has the sole discretion on making these exceptions.
WHAT HAPPENS AT THE CLOSE OF AN AUCTION? Royalty Exchange 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, so we recommend that bidders check back often as an auction nears closing time. When the auction has officially come to a close, the listing will indicate “Auction is Closed.”