Sondors Electric Car company raised $1 million on StartEngine using Reg CF at the end of 2016. The company is back on StartEngine now with a smaller funding round but buried within the Offering Memorandum was the statement that Sondors apparently intends on using both Reg A+ and Reg D (506c). Both of these securities exemptions are iterations of crowdfunding where Sondors may list and raise capital online.
According to the document;
“We intend to engage in an offering of up to 697,350 shares of Common Stock of the company at a price of $28.68 per share under Regulation A, and an offering of up to 348,675 shares of common stock of the Company, at a price of $26.68 per share, under Rule 506(c)…”
If you add that up, Sondors Electric car is looking to over $29 million in addition to what they have already raised under Reg CF (an exemption that is currently capped at $1,070,000). By using Reg A+, Sondors will be able to raise far beyond the current Reg CF cap. With 506c, Sondors will be able to generally solicit accredited investors. No terms are currently available but they may differ from other future offers to sell securities.
Sondors gained notoriety with his rewards based crowdfunding campaigns on Indiegogo. Between two different campaigns, Sondors raised over $7.2 million on Indiegogo. The first campaign remains one of the top funding Indiegogo campaigns of all time.
Since the success on rewards platforms, Sondors formed a new company to raise funding for an electric car. According the information available on StartEngine, Sondors is looking to design and manufacture a three-wheel electric car that will retail for under $10,000.
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