1. Prior to the auction, a basement bid of $15,000/unit was secured.
Auction Scenarios
The following auction scenarios assume an angel group or fund is auctioning off 4 units of Company X.
Prior to the auction, a basement bid of $15,000/unit was secured.

2. Disclaimer
The scenarios presented within are theoretical scenarios merely intended to demonstrate the mechanics of the [Company X] auction. These scenarios do not attempt to value [Angel Group’s] holdings in [Company X] today or in the future, nor should they be used to inform any bids on [Angel Group’s] holdings.

3. Actual Units Purchased Actual Unit Price/Share
Auction Example #1
The highest bid to clear all units is $55,000/unit, placed by Investor 4. This is the price at which all winning bidders will purchase units. Investors 1, 2, 3, and 4 each purchase 1.0 units for $55,000/unit. Investors 5 & 6 do not purchase units, as their bids were not high enough.
Units
Bid
Bid Price
/Unit
Actual Units Purchased
Actual Unit Price/Share
OTAF I Proceeds
Investor 1
1.0
$85,000
$55,000
Investor 2
$75,000
Investor 3
$65,000
Investor 4
Investor 5
$45,000 -
Investor 6
Total
4.0
$220,000

4. Actual Units Purchased Actual Unit Price/Share
Auction Example #2
The highest bid to clear all units is $65,000/unit, placed by Investor 3. This is the price at which all winning bidders will purchase units. Investor 1 purchases 1.0 unit, Investor 2 purchases 2.0 units, and Investor 3 purchases 1.0 unit, all for $65,000/unit. Investors 4-6 do not purchase units, as their bids were not high enough.
Units
Bid
Bid Price
/Unit
Actual Units Purchased
Actual Unit Price/Share
OTAF I Proceeds
Investor 1
1.0
$85,000
$65,000
Investor 2
2.0
$75,000
$130,000
Investor 3
Investor 4
$55,000 -
Investor 5
$45,000
Investor 6
Total
4.0
$260,000

5. Actual Units Purchased Actual Unit Price/Share
Auction Example #3
The highest bid to clear all units is $85,000/unit, placed by Investor 1. Investor 1 purchases 4.0 units for $85,000/unit. Investors 2-6 do not purchase units, as their bids were not high enough.
Units
Bid
Bid Price
/Unit
Actual Units Purchased
Actual Unit Price/Share
OTAF I Proceeds
Investor 1
4.0
$85,000
$340,000
Investor 2
1.0
$75,000 -
Investor 3
$65,000
Investor 4
$55,000
Investor 5
$45,000
Investor 6
Total

6. Actual Units Purchased Actual Unit Price/Share
Auction Example #4
The highest bid to clear all units is $65,000, placed by Investor 3. This is the price at which all winning bidders will purchase units. Investors 1 and 2 get their full allotment of units, as they had higher bids than Investor 3. Investor 3 only receives half the units for which she bid. Investors 4-6 do not purchase units, as their bids were not high enough.
Units
Bid
Bid Price
/Unit
Actual Units Purchased
Actual Unit Price/Share
OTAF I Proceeds
Investor 1
2.0
$85,000
$65,000
$130,000
Investor 2
1.0
$75,000
Investor 3
Investor 4
$55,000 -
Investor 5
$45,000
Investor 6
Total
4.0
$260,000

7. Actual Units Purchased Actual Unit Price/Share
Auction Example #5
The highest bid to clear all units is $45,000, placed by Investors 3 and 4. This is the price at which all winning bidders will purchase units. Even though Investor 4 bid the same price per unit as Investor 3, Investor 4 does not purchase any units because Investor 3 was willing to purchase more units than Investor 4. Investors 4-6 do not purchase units, as their bids were not high enough.
Units
Bid
Bid Price
/Unit
Actual Units Purchased
Actual Unit Price/Share
OTAF I Proceeds
Investor 1
1.0
$55,000
$45,000
Investor 2
Investor 3
2.0
$90,000
Investor 4 -
Investor 5
$35,000
Investor 6
$25,000
Total
4.0
$180,000

8. Actual Units Purchased Actual Unit Price/Share
Auction Example #6
The highest bid to clear all units is the basement bid of $15,000. This is the price at which all winning bidders will purchase units. Investor 1 purchases 2.0 units, Investor 2 purchases 1.0 unit, and the basement bid purchases 1.0 unit, all for $15,000/unit.
Units
Bid
Bid Price
/Unit
Actual Units Purchased
Actual Unit Price/Share
OTAF I Proceeds
Investor 1
2.0
$20,000
$15,000
$30,000
Investor 2
1.0
$19,000
Basement Bid
4.0
Total
$60,00