The athlete IPO talk is back. In fact, they may be back in business. Two issues are driving the chatter here, and it is not that the Super Bowl was a crowd killer.
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News was out this week that the Vernon Davis IPO was still on track. Then came and SEC Filing via Form D showing that Fantex, the company behind these proposed athlete IPOs was going to be raising up to $20 million. The filing shows that it actually raised all of that except for $1.
The Form D also said, “The total amount sold in 13(b) includes the value of securities issued in exchange for cancellation of indebtedness of the Issuer to certain purchasers in the aggregate amount of $711,711.80.”
The Form D filing shows that 53 people have already invested in the offering.
As for the risks here, let’s just say we have covered them and they are not going to be easy for most investors to grasp. Under no circumstances would they fit in a widows and orphans suitability profile.
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