Seize The Grey was offered on MyRacehorse.com for $127 a share
and has 2,570 unique owners
Since launching in 2019, MyRacehorse, a fractional ownership
platform making ownership in racehorses affordable to all, has
brought Thoroughbred racehorse ownership to over 75,000 people
across the globe.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240710463340/en/
Seize The Grey wins the 2024 Preakness
Stakes. (Photo: Eclipse Sportswire)
Today, MyRacehorse announced that one of its most successful
horses to date, Preakness Stakes winner Seize the Grey, has secured
a stallion deal that could yield his owners up to $13.5 million.
MyRacehorse and its owners will retain 100% of the racing interest
in the 3-year-old son of Arrogate, and 10% of the future stallion
rights. Shareholders will continue to receive pro-rata
distributions from race earnings as well as distributions earned
from the stallion deal.
Seize the Grey has 2,570 individual owners who all got involved
for a one-time payment of $127 per share, an investment made
possible exclusively via the MyRacehorse micro-share platform.
“Owning a racehorse is one of the biggest aspirations for racing
fans, but the costs to own a horse outright are extremely high,
with horses often selling for hundreds of thousands if not millions
of dollars,” said Michael Behrens, founder and CEO. “Then there are
the added training and care expenses, which run about $60,000 per
year. Our idea was to use crowdfunding to allow anyone to become an
owner. With tens of millions of fans across the world, the
collective buying power of the crowd could compete with
anyone.”
Seize the Grey, purchased for $300,000 as an unraced yearling in
2022, is currently trained by legendary Hall of Famer D. Wayne
Lukas. The colt has won four races in his career, including the G2
Pat Day Mile on the Kentucky Derby undercard; and the G1 Preakness
Stakes, the second leg of the famed Triple Crown. His career
earnings are just over $1.8 million to date.
Internationally renowned stallion farm Gainesway, home to
leading sire Tapit, purchased 90% of Seize the Grey’s stallion
rights.
“We are excited to add Seize the Grey to our stallion roster,”
said Gainesway General Manager Brian Graves. “Arrogate was cut out
to be a top sire and we are excited to have one of his best sons
stand at Gainesway. His speed and good looks should prove to be
very popular with breeders.”
The base valuation on the purchase was $3.5 million, with a
number of possible bonuses to be triggered by subsequent victories
by Seize the Grey. The milestones are:
· $3 million for a G1 Travers S. win · $4
million for G1 Breeders’ Cup Classic win · $2 million for another
Grade 1 win (not named above) · $1 million if he’s named champion
3-year-old
“Seize the Grey has been a dream come true for so many of his
partners. Owning a champion is an indescribable thrill, but what
also makes this special is the fact that each of these partners is
participating in the profits,” said Behrens. “No one buys a
racehorse to get rich–it is what we call an experiential
investment. You do it because you love the horse, you love the
sport and you love the thrill of victory. However, it is an
expensive sport, so when you are lucky enough to get a horse of
Seize the Grey’s caliber it is important to be able to participate
in the upside and be rewarded.”
For Seize the Grey, shareholders have already received $225 per
share from prior purse earnings, and will now be participating in
their pro rata share of the stallion deal, which before taxes could
be valued at as much as $2,000 per share. Shareholders will also
receive an annual dividend for their 10% equity in Seize the Grey’s
revenue earned at stud.
According to Lukas, Seize the Grey may have his best races still
in front of him.
“He just keeps getting stronger and better, and I am expecting a
big second half of the year,” said the 88-year-old conditioner. “I
truly believe his best races are yet to come.”
“Seize the Grey is not done racing, and we have some big
ambitions moving forward, including the 1/ST Grand 3, a new series
launched by 1/ST Racing that provides a $5-million bonus if a horse
wins the Preakness, the G1 California Crown and G1 Pegasus World
Cup,” said Behrens. “It's definitely a lofty target, but this is
the type of horse that allows us to dream big.”
MyRacehorse is one of the few platforms that has securitized
fractional interest in horses and is able to sell to both
accredited and non-accredited investors. Fractional interests start
at around $100. MyRacehorse currently has over 120 active horses,
mainly in the United States and Australia, has recorded over 200
wins, and has campaigned multiple graded stakes winners including
the 2020 Kentucky Derby and Breeders’ Cup Classic winner,
Authentic.
To learn more about MyRacehorse, visit MyRacehorse.com or
download the app.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy securities, nor shall there be any
sale of these securities in any state or other jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any
such state or other jurisdiction.
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended. These forward-looking statements include all statements,
other than statements of historical fact, regarding our current
views and assumptions with respect to future events regarding our
business, including statements with respect to our plans,
assumptions, expectations, beliefs and objectives with respect to
the potential distributions under the Seize the Grey stallion deal,
future prospects of other race horses in our stable, market
opportunity, competitive position, business strategies, potential
growth opportunities, market and other conditions and other
statements that are predictive in nature. These statements are
generally identified by the use of such words as “may,” “could,”
“should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,”
“expect,” “intend,” “plan,” “continue,” “outlook,” “will,”
“potential” and similar statements of a future or forward-looking
nature. Readers are cautioned that any forward-looking information
provided by us or on our behalf is not a guarantee of future
performance. Actual results may differ materially from those
contained in these forward-looking statements as a result of
various factors disclosed in our filings with the SEC, including
the “Risk Factors” section of our Annual Report on Form 1-K filed
with the SEC on April 29, 2024. All forward-looking statements
speak only as of the date on which they are made, and we undertake
no duty to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
to the extent required by law. Past performance is no guarantee of
future results.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240710463340/en/
Experiential Squared / MyRacehorse -
mediarelations@myracehorse.com