US automotive startup Elio Motors set an equity crowdfunding precedent after the Securities and Exchange Commission (SEC) last week qualified the automaker to launch a $25m stock sale under Regulation A+.
Elio Motors was founded in 2008 by Paul Elio, now CEO, and aims to begin production of its three-wheel
P5 prototype by late 2016.
Production is set to take place in America, with the P5 boasting up to 84 miles per gallon and means the P5 can achieve an impressive 672-mile range out of an 8 gallon fuel tank, while still maintaining a swift 100mph top speed. And all that at a low targeted base price of just $6,800
The company received more than $45.6 million in non-binding expressions of interest through its ‘testing the waters’ phase, which is close to 183% of its original target. The interest gathering phase of the campaign was launched on June 19 – the first day the new Regulation A+ exemption came into play, allowing non accredited individuals to invest through crowdfunding.
Elio Motors has contacted those who expressed interest to invest and offered them a chance to buy equity in the company over a period of seven business days, from November 20th through to December 2nd.
However, although non-US citizens were able to register interest in investing, only US citizens are actually able to invest in the offering.
After the seven day period, the general public will be able to invest, provided the $25m offering has not yet been fully received.
The $25m offering for equity shares of the startup was made possible through collaboration with equity crowdfunding platform StartEngine, as well as crowdfunding agency CrowdfundX.
“This is obviously an important and exciting day in Elio Motors’ history.
“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,” said CEO Paul Elio.
Elio Motors aims to offer more than just quirky three-wheel design, making mention of manufacturing jobs and low-cost transport solutions, as well as focusing heavily on environmental implications.!
“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,” said Elio.
The automaker will produce the vehicles at a 1.8 million square foot former General Motors manufacturing plant in Shreveport, Louisiana.
According to the company more than 47,000 people have reserved a chance to purchase one of the vehicles once they’re in production.