Sondors Electric Car Company has listed another crowdfunding campaign on StartEngine – this time targeting accredited investors under Reg D 506c (Title II of the JOBS Act).
Previously, Sondors raised $1 million under Reg CF rules. Under Reg CF, issuing firms have the ability to raise money from both accredited and non-accredited investors. Accredited investors, in brief, earn $200,000 or more a year or have a net worth of more than $1 million (beyond their primary residence). The Sondors Electric Car Reg CF offer is one of the handful of companies that have raised the maximum allowable under the rule which was recently increased to $1,070,000 (from $1 million).
Sondors was quoted on the offer;
“Last year, we raised $1M on StartEngine to build the initial prototype. Our investors took a risk with us and we put their money to very good, very efficient use. Our philosophy has always been to let the crowd be a part of our process. So now, I am now raising $20 million for the production tooling and certifications, so we can start producing cars. This current offering is open to accredited investors only; although, we have plans in the very near future to offer an investment opportunity to everyone.”
The new Reg D, 506c, offer on StartEngine is seeking $20 million at a valuation of $100 million. The investor minimum is $2,007,60 at $28.68 per share. The previous Reg CF crowdfunding offer listed a valuation of $30 million meaning the value of Sondors Electric Car has more than tripled in just a few months. As of May 1, 2017, the company listed net proceeds of $933,740 from the sale of common stock in the Reg CF Offering. The funds raised from the prior round are described as being used primarily to fund the design and development of the initial prototype.
The $20 million in funding from this offering is to provide the capital needed to complete the designs, a production prototype, design validation and testing, and for production tooling. Sondors states the company will be positioned to move straight to collecting pre-orders and assembling vehicles following a successful funding round.
Sondors states it also intends on listing a Reg A+ offer for another $20 million or up to 697,350 shares of common stock. Reg A+ offers are open to both accredited and non-accredited investors but these crowdfunding rounds must first be qualified by the Securities and Exchange Commission, a process that may take months to complete.
The Sondors Electric car is said to be sold for less than $10,000 putting it on the other end of the spectrum of the highest profile electric car made by Tesla. The specs on the design are outlined as follows:
- 0-60 in 5 to 8 seconds
- Lithium Ion Battery with ranges from 50, to 100 and 200 mile ranges
- 2 front and one rear seat
- three wheeled vehicle
Sondors expects to sell 120,000 vehicles the first year in operation. Production is currently scheduled to commence in April 2019.
Sondors jumped into the crowdfunding arena with a very successful perk-based campaign listed on Indiegogo. Sondors launched an electric bicycle company using funds raised via Indiegogo – a company that is operational today.
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