Fantex Brokerage Services Launches First Trading Platform for Stock Linked to the Value and Performance of an Athlete Brand [Manufacturing Close - Up]
(Manufacturing Close - Up Via Acquire Media NewsEdge) Fantex Holdings, based in San Francisco, announced that it is launching two subsidiary companies, Fantex Brokerage Services (FBS) and Fantex, Inc.
According to a release, FBS is an all-new marketplace that allows investors to buy and sell Fantex, Inc. stock linked to the value and performance of the brand* of a professional athlete. Fantex, Inc. is a brand building company, which purchases a minority interest in an athlete brand and works to increase the value of the brand. Holders of shares of a Fantex, Inc. tracking stock will have no direct investment in that brand contract, associated brand or athlete. Rather, an investment in a tracking stock will represent an ownership interest in Fantex, Inc. as a whole.
Fantex, Inc. has filed a registration statement for its first tracking stock, which will be linked to the value and performance of the brand of Houston Texans Pro Bowl running back Arian Foster. This will mark the company's first Initial Public Offering (IPO).
"Fantex is bringing sports and business together in a way never previously thought possible," said Buck French, co-founder and CEO of Fantex Holdings. "By building a marketplace that allows customers to buy shares in a tracking stock linked to the value and performance of an athlete brand, Fantex is enabling a new level of brand advocacy through ownership. For the first time, people can now invest real money in a stock linked to the brand of a professional athlete."
The company noted that the tracking stock will be offered pursuant to a registration statement that has been filed with the Securities and Exchange Commission (SEC), and the stock is linked to the economic performance and value of the professional athlete's brand, such as playing contracts, endorsements, and appearance fees. All investor transactions take place on Fantex Brokerage Services.
Investors can register at Fantex.com and fund their accounts. Starting in approximately two weeks, they can place reservations for shares in the IPO of Fantex Arian Foster. The offering is highly speculative and the securities involve a high degree of risk. Investing in a Fantex, Inc. tracking stock should only be considered by persons who can afford the loss of their entire investment.
Fantex, Inc. reported that its goal is to announce additional brand acquisitions in the months ahead, and over time across the world of sports. There is no assurance that Fantex, Inc. will acquire additional brands. If Fantex, Inc. acquires new brands, it may issue additional tracking stocks which involve additional risks.
"Fantex represents a powerful new opportunity for professional athletes, and I wish it were available during my playing days," said John Elway, Fantex Holdings Board Member, Hall of Fame quarterback and current EVP of football operations for the Denver Broncos.
While Fantex serves as a new proposition for investors to consider, it also offers a proposition for athletes. Fantex, Inc. creates a brand building platform for athletes to increase the reach and engagement of their brand. Fantex, Inc. signs a contract with an athlete to acquire a minority interest in their brand and builds a plan with a goal to increase its value, leveraging its marketing expertise. In order to fund the purchase, Fantex, Inc. develops a tracking stock linked to the economic performance of the brand contract and sells shares in the tracking stock to the general public through a registered initial public offering on Fantex Brokerage Services.
Based in San Francisco, Fantex Holdings serves as the parent company to both Fantex, Inc. and Fantex Brokerage Services. Fantex, Inc., is a brand building company, which purchases a minority interest in an athlete brand and works to increase the value of this brand. In order to fund the purchase, Fantex, Inc. develops a tracking stock that is linked to the economic performance of the brand.
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