The Liquid Rarity Exchange (LRE) was designed to provide the public with a new tangible alternative investment archetype. LRE owns the only issued patent creating a new class of securities comprised of “Art Assets”: tangible items of high value that are one-of-a-kind or of limited in number.
- An “Art Asset” also referred to as a “Rarity” is used herein to refer to a certain type of uncommon item, it could also be considered a collectable, scarce and or in the state or the quality of being rare. Furthermore, a “rarity” could be considered of unusual excellence, an item of superior value that’s limited or one-of-a- kind. In addition, investments in a rarity or pool of rarities could be defined as a premium product whether man made or made by nature.
Liquid Rarity Exchange encompasses all types of “Art Asset” classifications and “Collectibles”. LRE appraisers and dealers will collaborate with LRE licensed investment managers in order to bring this new SEC registered security to the public. All classifications of investment quality “collectables” will be traded through LRE investment funds. LRE fund managers will purchase investment grade collectables from around the world including but not limited to; private and public collections, museums, galleries, auction houses, personal estate and corporate liquidations, and governmental properties. LRE “Art Asset” funds will be pooled, bought, and sold through a variety of investment securities types.
FUNDING SOURCES THROUGH LRE SECURITIES - LRE could become a primary source of funding for museums and galeries
Museums and galleries could sell selected “Art Assets” through various LRE securities. New LRE investment securities will be offered to the public in the form of an IPO. The public will then own the “Art Asset pool” through the purchase of fractional shares. Museums will be able to raise money without giving up the physical rights to their “Art Asset”, since no one person owns the piece. The LRE funds manager will contractually give the physical rights to museums and galleries. Essentially, nothing changes for the museum with the exception of ownership of “Art Assets” is assigned to the public. In addition, in most cases the LRE fund will also pay for insurance and some security costs further offsetting a museum’s operational obligations.
PRIVATE, PUBLIC COLLECTIONS SOLD THROUGH LRE SECURITIES
Selling “Investment Grade” collectables through LRE securities could also increase net profits to sellers. LRE provides an alternative to “Art Asset” owners when selling their collectables. LRE lowers the cost-of- sales, as what was once a highly specialized market is now open to millions of people.
CONTINGENT GUARANTEE PURCHASES
Museums and “Art Asset” sellers could also opt for a guaranteed price of the “Art Asset” as a part of the purchase agreement. This will help expedite the formation of the LRE fund and the corresponding compensation to the “”Art Asset” owner.
