Elio Motors, one of the very first companies to take advantage of new Regulation A+ rules created by the JOBS Act of 2012, has provided an update on their equity crowdfunding campaign. As of today, Elio has raised almost $16 million and has topped their hurdle of $12.6 million deemed necessary to fund engineering and testing of the E-Series prototype. According to information provided by Elio, the listing on StartEngine will close on February 1, 2016. Elio affirmed its intent to allow shares to be traded on the OTCQX, OTC Markets best market for established US and international companies, thus providing liquidity for early investors.
The offer of shares in Elio Motors was revealed this past June. The company took advantage of the ability to “Test the Waters” (TTW) as part of the new Regulation A+ exemption to gauge investor interest. As part of that precursor campaign, Elio quickly generated non-binding investor interest that surpassed $25 million. Crowdfund Insider reported at the end of July over 6600 investors had registered for the offer on StartEngine. The SEC approved the filing in November and the offer was soon launched on StartEngine.
“Fan reaction to this vehicle has been extraordinary, as we have nearly 50,000 people who have put down their hard earned money for a place in line and said ‘I want one’,” said company founder Paul Elio. “How many other vehicles have built that much enthusiasm before production? Few, if any. This vehicle has struck a chord with the American public, and this stock offering has helped us get to an important phase in our development.”
While $16 million is far shy of the maximum goal of $25 million a person with knowledge of the offer said they were proud of what they had accomplished. Many industry insiders have wondered as to how much individual interest would stick once a check needed to be written. With more than 2 weeks left for investors to purchase shares, Elio has so far hit more than 60% of the funding goal (about 35% of the indicated interest of approximately $46M).
Shares are still available in our $25 m stock offering on a first-come first-served basis. https://t.co/76A465Z703 pic.twitter.com/qTUdE4EtON
— Elio Motors (@ElioMotors) December 3, 2015
Elio Motors has been working on a new vehicle prototype since 2009. The design is a 3-wheeled enclosed transportation that is said to get up to 84 MPG. Initial retail purchase price has been set at $6800 thus creating a very economical form of transportation. Elio states it is hoping for a production launch in late 2016. A production facility has been acquired in Shreveport, Louisiana that was previously a manufacturing site for GM. Elio believes it will create up to 1500 new jobs as part of the production. Elio stated their intent to craft a vehicle that will make a “positive impact” on world.
“The Elio will create jobs, provide low-cost transportation and help wean our country off of oil dependence. We are on a mission to get to production so we can begin to make a significant impact,” stated Elio.
See Elio Press Conference at NAIAS via Periscope below (long wait at the beginning).
#Elio Motors press conference is set to start at 1:25pm EST. Stay tuned on periscope! @NAIASDetroit #NAIAS https://t.co/txLIRvzvH6
— Elio Motors (@ElioMotors) January 12, 2016
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