Regulation A+ Gets Investing Back to What it was Meant to Be
Elio Motors has made no secret that funding is one of our biggest hurdles. It takes a lot of capital to start a new vehicle manufacturing venture.
Fortunately, the Federal government had the wisdom to enact Regulation A+. In March 2015, the Securities and Exchange Commission (SEC) finalized amendments to Regulation A under Title IV of the 2012 Jump Start Our Business Start-up (JOBS) Act, paving the way for private companies to raise up to $50 million from non-accredited investors. Elio Motors was one of the first companies to launch a formal stock offering utilizing Regulation A+ on Nov. 20 , 2015, after receiving qualification from the SEC. The company closed the Regulation A+ offering Feb. 16, 2016, having raised nearly $17 million and began trading on the OTCQX market.
At Elio Motors, we think Regulation A+ is investing done the way it was meant to be. It creates an easier process for linking entrepreneurs with potential investors, and for the average Joe. Funding is often a significant roadblock for bringing big ideas to the market, but thanks to Regulation A+, Elio Motors’ has raised some much-needed capital and shares are now trading on the OTCQX.
Elio Motors is the first company to have its shares traded publicly on the OTCQX after going through the entire Regulation A+ process. The OTCQX provides several advantages to Elio Motors, including increased transparency for trades executed in the U.S. and lower costs than listing on a traditional U.S. stock exchange.
On Thursday, Paul Elio addressed an audience of financial industry media and influencers at the OTC Markets office in New York. In case you missed it, you can watch the briefing online here.
Paul is passionate about Regulation A+, not only because of how it has helped Elio Motors, but also for how it can help the economy as a whole. For many entrepreneurs, access to capital is the single biggest factor holding them back. For non-accredited investors, it has been difficult to get in on the ground floor of start-up company initial public offerings.
Regulation A+ helps both the entrepreneur and the investor, and it stimulates what Wall Street was meant for in the first place. People with big ideas who can change the world can find investors who believe in their vision. Over the next several years, we hope to see more companies and investors take advantage of Regulaton A+ to help build our economy. We’re proud to be the first company to go from a Regulation A+ offering to a publicly traded company, and we look forward to providing a positive case study.