Elio Motors said Thursday that it would start selling shares to the general public. The company said more than 11,000 people made "non-binding expressions of interest" between June 19 and November 20, after which it received regulatory approval for a stock sale that the company hopes will generate as much as $25 million. That's the highest amount raised among all the companies that participated in the 2012 "Jump Start Our Business Start-up" (JOBS) Act.
Elio Motors was founded in 2008 and aims to make a three-wheeled vehicle that gets up to 84 miles per gallon. Elio has set a base price for the trike at $6,800, and it will produce the vehicles at a Louisiana factory once run by General Motors. As many as 1,500 people will work at the plant, while Elio says as much as 90 percent of the parts in the trike will come from the US.
The company recently showed the next-generation prototype of the trike at the Los Angeles Auto Show late last month. Elio says more than 47,000 people have signed up to buy the vehicle, as you can see in the press release below.
Company's exclusive offering nets funds to move the engineering forward on producing the final E series
PHOENIX, Dec. 3, 2015 /PRNewswire/ -- Elio Motors today announced that thanks to its supporters and the funds raised during its current stock offering, it will move forward with the development of 25 engineering and test vehicles. The test vehicles will be used to conduct a variety of final engineering and validation tests that will allow the company to make final adjustments prior to production.
"We are incredibly thankful for all the people who expressed interest in Elio Motors and felt it was important that we reward them with an exclusive timeframe to guarantee they had the opportunity to make an investment," said Elio Motors founder and CEO Paul Elio. "Their support and belief in our mission means the world to us and they've come through. The funds raised to date will allow us to begin building our engineering and testing vehicles, a critical step in our march toward production."
The company, which is seeking to build a low-cost, highly fuel-efficient vehicle, launched a formal stock offering on Nov. 20 after receiving qualification from the Securities and Exchange Commission of its offering statement under Regulation A+.
From Nov. 20 to Dec. 2, Elio Motors created an exclusive window of opportunity for those who had expressed interest in the company during the "testing the waters" phase of the investment process to purchase shares in the company. Potential investors were able to make non-binding expressions of interest in the company from June 19 to Nov. 20. More than 11,000 people expressed interest during this period.
Elio Motors is launching an innovative, enclosed, three-wheel vehicle (the Elio) that is anticipated to get up to 84 MPG with a targeted $6,800 base price and is aiming for a late 2016 production launch. The company recently introduced its next generation prototype, the P5 at the Los Angeles Auto Show. Elio Motors is already generating significant consumer interest, as more than 47,000 people have reserved a spot in line to purchase a vehicle when they go to production.
Elio Motors is seeking $25 million through this stock offering and still has shares available. Now that the exclusive window of opportunity for those who initially expressed interest has passed, anyone can now purchase shares. For information on the company and to proceed with an investment, go to StartEngine.com.
"We are building a product that can literally change the world," Elio said. "The benefits our vehicle will have include job creation, low-cost transportation and helping wean our country off of oil dependence. We are on a mission to get to production. The funds raised to date through this offering are a significant step toward getting to production."
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 production facility. In addition, the goal of the Elio is to use up to 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 2009, 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.
SOURCE Elio Motors