Sondors eBike creator Storm Sondors has filed a Form-C with the Securities and Exchange Commission (SEC) to raise capital for the Sondors Electric Car Company, a business created with the purpose of designing and developing an electric car labeled the “Model Sondors”. The filing states the vehicle will be marketed and sold world-wide.
Storm Sondors is the creator of the 2nd largest Indiegogo campaign ever. The Sondors eBike (né Storm eBike) raised over $6 million for a high-profile fat tire, electric bike. Over 15,000 backers participated in the inaugural campaign for the reasonably priced product. Since that time, Sondors has launched additional rewards crowdfunding rounds on both Kickstarter and Indiegogo. Now it appears he is going from two wheels to four.
According to the filing with the SEC, Sondors will raise just just shy of the maximum allowed under the exemption.
The filing states that after the offering there will be 2,783,333 shares outstanding valuing the firm at over $33 million. The proceeds of the offer will be used primarily to complete the design and development of the Model Sondors prototype which remains a concept. Under the Valuation methodology in the filing, the document explains the price of the stock merely reflects the opinion of the CEO and management of Sondors as to what a fair value would be.
While Sondors has successfully shipped thousands of eBikes around the world the Sondors Electric Car Company is separate and was only incorporated in August 2016 and currently has no employees. The disclosure document states that Sondors estimates an additional $10 million will be needed to reach the vehicle production stage.
Sondors is not without controversy. Early on in his initial Indiegogo campaign, Sondors and his co-founder John Hopp had a falling out which resulted in Hopp’s departure. Sondors had also signed up well-known marketing firm Agency 2.0 to assist with the Indiegogo campaign – a partnership that boosted the campaigns crowdfunding success. The relationship eventually soured and resulted in a lawsuit filed by Agency 2.0 for contractual fraud.
The offering for the Sondors Electric Car Company is not yet live on StartEngine, the apparent platform it will use to raise funding, but it appears to be readying to list the offer soon.
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