How do Auctions work?

Augment Auctions allow investors to bid on a block of shares from a shareholder in a private company. The seller is committed to entering into a Stock Purchase Agreement with the winning bidder. Augment vets the seller to verify they own the shares and that they are transferrable.

  • The seller may list an exact number of shares for auction.
  • They may specify an optional reserve price which, if not met, renders the auction void.
  • Bidders must complete their profile and have their KYC approved in order to place bids in auctions.
  • Bids must be made in some minimum increment. For example, if the increment is $0.25 and the current winning bid is $10, then the next bid must be >= $10.25.
  • This is a live auction. Bidders are anonymous but bids are viewable in real time.
  • Bidders must specify the share price they are willing to buy the shares at, all-or-nothing.
  • Bids are binding and cannot be canceled.
  • The winning bidder is required to enter into a purchase agreement with the shareholder at the winning price per share.
  • Each auction has a specified end time. If a bid is entered in the last 5 minutes, the auction extends another 5 minutes from when this bid was entered. This continues until no bid is entered for 5 minutes, at which point the auction ends.