Elio Motors is on a roll.
On Thursday November 19th, the 5th generation prototype was unveiled at the Los Angeles Auto Show. The P5 contains the IAV-designed prototype engine and makes Elio Motors the first American start-up transportation company in the past 60 years to build its own unique internal combustion engine. To add to the momentum, Elio Motors announced on Friday that they had received authorization from the Securities and Exchange Commission under Regulation A+ to launch a $25 million stock sale.
Elio Motors began the “testing the waters” phase on June 19th, and has received more than $45.6 million in non-binding expressions of interest. The amount of interest is staggering, as the goal was set at $25 million, and nearly 183% of the goal was received.
From November 20th until December 2nd, those who have expressed interest in the offering during the “testing the waters” phase will have the exclusive opportunity to make an investment in Elio Motors. If the entire $25 million offering is not met by December 2nd, the offering will be available to the general public.
Regulation A+ has the potential to transform investing for everyone, as it allows non-accredited investors the opportunity to invest in companies that will have a tremendous impact on the future. In the past, Initial Public Offerings were typically reserved only for the wealthiest investors. Paul Elio believes that “Regulation A+ democratizes the investment process.”
Elio Motors is unique not only because of their distinctive vehicle, but also because of their trailblazing approach to crowdfunding. According to Forbes, “There’s no doubt, however, that Elio (Motors) is paving a way for something that, if it works, could prove to be truly groundbreaking.” For the first time, every day investors will have the opportunity to invest in an American startup that is dedicated to alter the course of transportation.
For more information on the offering, find the press release below:
In what is one of the largest equity crowdfunding rounds in the world, Elio Motors has received approval by the SEC to seek $25 million in equity capital using the StartEngine funding portal. Elio, one of the very first issuers to leverage the Testing the Waters aspect of Reg A+, received substantial investor interest. To date, over 11,000 individual investors have stated they would like to invest, in aggregate, almost $46 million. Now while the indication of interest is not binding, the substantial buffer between the targeted raise bodes well for Elio Motors.
Ron Miller, CEO and co-founder of StartEngine called the offering a “breakthrough” in the securities industry.
“This is a major victory for investment equality, and may be the biggest financial breakthrough of this generation. With this momentous SEC qualification, the government is setting an example for how nonaccredited investors can pursue opportunities via the StartEngine platform, including investing in Elio Motors and the next wave of progressive companies.”
The Elio Motors offering will be the largest so far under the Tier 2 Regulation A+ offering. An exemption that was signed into law by the JOBS Act of 2012. The new securities rule now allows non-accredited investors to participate in smaller companies seeking growth capital. The smaller IPO market has all but disappeared as costly regulations has forced successful companies to remain private for as long as possible. Reg A+ may alleviate part of that problem while democratizing access to investment opportunity. Shares in issuing companies using Reg A+ are freely tradable, according to the rules, and are expected to trade on established exchanges at some point in the future.
Elio Motors founder Paul Elio wants to disrupt the transportation industry with a low cost yet highly functional, gas engined vehicle that claims 84 MPG. “Our goal is to alter the course of American transportation, and with today’s breakthrough, we are one step closer to this revolution, not just for drivers, but for anyone who believes that a good idea has the power to change the world,” stated Elio. The aspiring automotive mogul said he was “thrilled” to allow thousands of new investors to become owners of the company. Elio has already targeted a former GM plant in Shreveport, La. for manufacturing and has stated the company expects to create 1,500 jobs at the facility and another 1,500 jobs at supplier companies. The multiplier effect of the monetary injection should help drive thousands of new jobs beyond those numbers. The $25 million raise will be utilized to bring the vehicle into production by 2016. At an estimated retail cost of $6800, alongside some unique financing programs, the trip-wheel Elio car has high hopes for mass approval and robust sales.
“This is a major victory for investment equality, and may be the biggest financial breakthrough of this generation,” said StartEngine CEO Ron Miller. “With this momentous SEC qualification, the government is setting an example for how nonaccredited investors can pursue opportunities via the StartEngine platform, including investing in Elio Motors and the next wave of progressive companies.”
A StartEngine issuer from the outset, Elio Motors is among the first handful of companies to receive SEC qualification under the Regulation A+ rules. Since the June 2015 launch of Regulation A+, these new rules facilitate investment by nonaccredited individuals using a crowdfunding mechanism. Elio Motors founder Paul Elio seeks to challenge the status quo of personal transportation with an affordable, safe and environmentally friendly vehicle.
“Our goal is to alter the course of American transportation, and with today’s breakthrough, we are one step closer to this revolution, not just for drivers, but for anyone who believes that a good idea has the power to change the world,” said Elio Motors founder Paul Elio. “We’re thrilled to open our doors to thousands of new investors, and will utilize the capital as part of our plan to begin production in late 2016.”
Based in Los Angeles, StartEngine believes a new era of entrepreneurship and opportunity has been unveiled under regulatory reform. Created in 2013 by Howard Marks, co-founder of Activision, and Miller, the platform believes it will “revolutionize” the startup business model by helping all people invest in private companies on a public platform, thus helping entrepreneurs achieve their dreams.