Adomani, a company that designs and integrates electric motors to convert existing internal combustion fleet vehicles into zero emission trucks, has closed its Reg A+ crowdfunding offer at $14,458,375. Adomani was seeking a minimum raise of $10.6 million and a max raise of up to $25 million, including the sale of shares by certain company stockholders for up to $3 million. Adomani was listed on Flashfunders and gained the support of Boustead, the Broker Dealer that recently acquired the crowdfunding platform. The total amount was said to include funds raised outside of the crowdfunding platform. There were 40 investors in the offer at a share price of $5 per share..
Last month, Adomani President and CEO Jim Reynolds stated;
“This is truly a milestone in ADOMANI’s quest to deliver our products and technology to the market. The net proceeds to us from this closing allows us to begin to execute our business plan, and we are thankful to our investors for having the confidence in us to enable us to do that.”
As previously reported, Adomani has applied to trade its shares on the NASDAQ, under ticker symbol “ADOM”. This will make Adomani the first company to successfully raise funding under Reg A+ and subsequently list on an exchange. Previously only Elio Motors made the leap from Reg A+ to a tradable security by listing on OTC Markets.
As part of Adomani’s strategy they are expanding into the enormous China market. By Q4 of 2017, Adomani expects to taking fleet orders in China delivered by a plant in the country. According to the Offering Circular, Adomani’s business plan is predicated on the demand for the conversion of existing diesel and gas powered trucks and buses to zero emission electric or hybrid vehicles.
Adomani has incurred losses in each fiscal year since their incorporation in 2012. During the year ended December 31, 2016, the company incurred a net loss of $10.7 million.
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