Investor Update March 2024
RarityX Q1 2024 Update
Happy Spring from Liquid Rarity Exchange, LLC (dba RarityX)
Dear Valued Stakeholders,
We wanted to take a moment to thank all of our valued stakeholders, reiterate some of the things that we have accomplished, and lay out the vision for what we will seek to achieve for the rest of 2024.
As always, one of our primary goals is to enhance stakeholder value. We recognize and honor all of you who continue to share our vision.
From the last newsletter, we have accomplished the following key milestones in addition to achieving many other successes:
- RIA Acquisition and Vertical Integration. New Way Advisers, LLC, our wholly-owned Registered Investment Adviser (RIA) subsidiary has established a sub-advisory agreement with another RIA, GL Trust Inc. who has over $35 million in Assets Under Management.
- Contract with national Turnkey Asset Management Platform: We have also contracted with Virtue Capital Management LLC, a premier turnkey asset management platform (TAMP) that has approximately $787,466,708 in assets under management as of December 31, 2024, to provide a suite of strategies and services to our growing investment advisory distribution partners.
- Charles Schwab Agreement: We have also successfully onboarded with Schwab as our initial client custodian and broker-dealer. Schwab, which merged in recent years with TD Ameritrade, is one of the world’s largest retail custodians and broker-dealers. Charles Schwab’s total current assets for the quarter ending December 31, 2023, were $271 billion, a 32.54% increase year-over-year.
- Enforcing our intellectual property and “core” patents. We successfully engaged a top patent litigation firm that has already begun to help us aggressively enforce our patents and negotiate licensing deals as well.
- Stan Lee and Steve Kaufman Superhero Art Collection. We will be listing approximately 80 original works of art along with their associated NFTs that were created by the famous artist Steve Kaufman, most of which have also been signed by Stan Lee, the founder, mastermind, and artist behind the Marvel entertainment empire. This one-of-a-kind collection includes both Marvel and DC comic superheroes and each work will come with a collectible animated NFT which acts as a fractional interest’s certificate of authenticity and ownership. The current estimated value of this entire collection is approximately $18 Million, though the formal appraisal will be completed the week of April 8, 2024. We plan to officially launch this collection in Q2 for the fractional share of art with a proprietary digital fingerprint and unique animated NFTs.
- Partnering with an international banking advisor and distributor. We have a relationship with an international bank that has over 27,000 financial professionals world-wide to help us market our rarity offerings. This firm will support our asset disposition strategy, supporting the sales of fractional shares in art, wine, coins, cars, and other rarities.
- Develop partnerships with other technology companies that provide strategic services. We have formed an operational joint venture with Coin and Card Auctions, Inc., a company based in California that specializes in fraud prevention technology, utilizing proprietary ultra-high-definition forensic scanning to create a digital fingerprint associated with our offerings. We have completed our agreements with this organization to facilitate the licensing and monetization of intellectual property owned by each entity.
- We developed a strategic partnership with a fractionalization technology company. We are also working with a novel Web3 company interested in licensing our IP for the fractionalization of classic cars through tokenization. This platform utilizes the Solana blockchain.
- We are in the final stages of partnering with an SEC-authorized transfer agent and ATS (alternative trading system). Our soon to be partner is one of the largest technology providers for the securitization and asset tokenization of real-world assets and they have also recently partnered with and received a substantial amount of capital from BlackRock. This partner is a fully regulatorily compliant and authorized ATS platform. The available technology infrastructure provides primary issuance and secondary trading with Web3 native capabilities. As we expand our reach into the world of tokenization of real-world assets and seek to reach larger pools of capital, we believe that this partner is the best choice globally.
- We are thrilled about the opportunity to expand our assets through partnerships with top experts in the field of Rare Coins. A highlight is our collaboration with Jeff Garrett, a preeminent figure in numismatics in the United States. Jeff, a renowned and respected author, has served as President of the American Numismatic Association and as a lead expert for the Smithsonian Museum. This partnership represents a significant step forward for our asset acquisition strategy.
- Pending partnership with a major city’s Museum of Modern Art to fractionally sell, trade, display, and preserve blue-chip assets. By offering a unique model to monetize assets and attract global market attention, our platform can support efforts to increase revenue, drive donor engagement, delight patrons, and inspire new audiences while enhancing the collections. We believe our approach can transform the traditional museum models and significantly impact the future.
- Monetize our Mineral interests in Torrance, CA. We have contracted with a leading Carbon Credits firm and anticipate monetization occurring in the second quarter of 2024.
- Opportunity to Acquire Multiple Blue-Chip Rarities. Through our international outreach efforts in Europe, we have obtained the opportunity to acquire multiple works of art from some of the most world-renowned masters including Michelangelo, Picasso, and Caravaggio. We have also obtained sources for some of the world’s most sought after and rare collectible cars.
- Successful Acceptance of Our Trademarks. We were recently informed that our requested trademarks, Genisor™, Digital Renaissance™, and Creating the Digital Renaissance™, have been accepted by the US Patent and Trademark Office.
We hope to share more updates in the coming weeks and months and keep you updated as we achieve important milestones. We will endeavor to communicate and share stakeholder updates as we accelerate our strategies. We are excited about our progress and happy to answer any questions.
Once again, thank you for your continued support and we wish you all a very happy and healthy Spring 2024!
Sincerely,
The RarityX™ Team
*Please note that many of our current matters are in the process of being finalized so any business matters, deals or statements discussed herein are subject to, among other things, ongoing due diligence, contractual and legal negotiations and the success of any of our efforts are contingent upon regulatory approvals and the availability of capital and necessary resources.