The news follows up Elio Motors' announcement in late July that it had received more than $25 million worth of "indications of interest" via a crowdfunding effort, in which more than 6,600 people said they'd pony up checks to get a piece of the action. This past week, Elio says that number has jumped to almost $46 million since first putting out feelers for potential investors on June 19.
Now, those people who've already expressed interest will have until December 2 to pay up for a share of the company before it goes out for broader-based funding. Elio Motors make the trikes at a former General Motors plant in Shreveport, Louisiana. The company said the factory will employ about 1,500 people.
Elio Motors was founded in 2008, and the company's first model is said to get up to 84 miles per gallon and will be sold at a base price of $6,800. About 47,000 have signed up to buy the vehicles. Take a look at the company's press release below and learn more about the new P5 prototype here.
Funding to Move Company Closer to Production
PHOENIX, Nov. 20, 2015 /PRNewswire/ -- Elio Motors announced it will launch a $25 million stock sale at 4 p.m. Eastern Time today after receiving qualification from the Securities and Exchange Commission under the Regulation A+ ruling in the 2012 Jumpstart Our Business Startup (JOBS) Act.
Elio Motors is seeking to raise $25 million to move closer to production, including building and testing an additional 25 vehicles that will be used for final engineering steps and validation.
Since June 19 of this year, Elio Motors has been in what's known as the "testing the waters" phase, gauging the level of interest from potential investors. Elio Motors received more than $45.6 million in non-binding expressions of interest, nearly 183% of its expressed goal.
"We have been working hard to bring the Elio to market and people believe in our project," said company founder and CEO Paul Elio "The Elio will have a positive impact on many facets of society, including new manufacturing jobs, mobility for the disadvantaged, lessening our dependence on foreign oil and the environment."
The company has offered an opportunity for all those that have indicated interest to buy shares during an exclusive period over the next seven business days. This exclusive window will run from Nov. 20 to Dec. 2. Once those days end, Elio Motors will open the offering to the general public if it has not received subscriptions for the entire $25 million offering.
Elio Motors is launching an innovative, enclosed, three-wheel vehicle (the Elio) that will get up to 84 MPG with a targeted $6,800 base price and is aiming for a late 2016 production launch. The vehicle already has a significant following. More than 47,000 people have reserved a spot in line to purchase a vehicle when they go to production.
"This is obviously an important and exciting day in Elio Motors' history," said company founder and CEO Paul Elio. "We have an excellent concept for a low-cost, highly fuel-efficient vehicle that can make a significant impact on the world. Funding has been our biggest challenge and obtaining authorization from the SEC provides an important source for raising capital."
In March 2015, the Securities and Exchange Commission finalized rules 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. This new ruling is known as "Regulation A+."
Non-accredited investors have annual incomes of less than $200,000 for individuals or less than $300,000 for married couples and net worth under $1 million, excluding their primary residence. Historically, non-accredited investors have been left on the sidelines for many investment opportunities, such as Initial Public Offerings and venture capital. Regulation A+ opens more investment opportunities for everyday people.
"Regulation A+ democratizes the investment process," Elio said. "It is a win for entrepreneurs because it helps open up access to capital. But, it's also a win for investors as more people will have opportunities that they simply didn't have access to previously."
Elio Motors will produce the vehicle in Shreveport, Louisiana, at a former General Motors production facility. The company estimates upwards of 1,500 will be directly employed at Elio Motors' Shreveport, Louisiana production facility. In addition, the Elio will use 90 percent North American content and create an additional 1,500 jobs from the supply base, Elio Motors corporate, as well as sales and service once full production is underway. Plus, approximately 18,000 indirect jobs nationwide are projected to be created or sustained.
About Elio Motors
Founded by car enthusiast Paul Elio in 2008, Elio Motors Inc. represents a revolutionary approach to manufacturing an ultra-high-mileage vehicle. The three-wheeled Elio is engineered to attain a highway mileage rating of up to 84 mpg while providing the comfort of amenities such as power windows, power door lock and air conditioning accompanied by the safety of multiple air bags and an aerodynamic, enclosed vehicle body. Elio's first manufacturing site will be in Shreveport, Louisiana.
The securities offered hereby are highly speculative. Investing in shares of Elio Motors, Inc. involves significant risks. This investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following this offering, it may not continue. To obtain a copy of the Offering Circular, go to http://www.eliomotors.com/equity or click here to download directly.