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It would be interesting to have a just 'The Facts' and the 'The Alternative Facts' Threads.
The only Elio fact that I can validate as fact is: No test driveable Elio prototype and/or vehicle validation after nearly a decade of R&D and Marketing the Elio dream.
The only Elio fact that I can validate as fact is: No test driveable Elio prototype and/or vehicle validation after nearly a decade of R&D and Marketing the Elio dream.
I hear you Rickb. I gave EM credit for successfully selling that dream, but it was a nightmare of an undertaking that necessitate a huge amount of money EM didn't realize will be difficult to get.
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Johnny Acree
Elio Addict
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How do other companies get this kind of money? EM has tried stocks, loans?, grants?. What about bonds?
booboo
Elio Addict
Bonds are similar to stocks that when the company issues them, there needs to be someone willing to purchase them. A bond purchaser usually wants more security and less risk than a stock purchaser. I do not know if ElioMotors is in that favorable position at this time.
" Generally speaking, a company needs to have some consistent earnings potential to be able to offer debt securities to the public at a favorable coupon rate."
http://www.investopedia.com/terms/c/corporatebond.asp
I don't think that the company is stable enough to get a bond. They are usually long established companies. They need someone to invest in return for equity or hopefully control.
raptor213
Elio Addict
New SEC filing publicly available concerning a forbearance agreement between RACER Trust and Elio Motors effective May 31, 2017: http://content.stockpr.com/sec/0001214659-17-003891/0001214659-17-003891.pdf
My takeaways:
-- Per Elio's recent annual shareholder meeting, this document already reflects new jurisdiction of incorporation as being in Delaware - quick turnaround!
-- The $7.5M aggregate fine ($5000 for up to 1,500 jobs not created as promised) that had a once-extended deadline of July 31, 2017 has been once again extended until September 1, 2019.
-- Language pertaining to the forbearance agreement suspiciously alludes to the real-world possibility of Elio Motors amassing significant capital in the coming weeks:
"3. Catch-Up Payment.
If Elio receives net proceeds of at least $25,000,000 in the aggregate from one or more offerings of Elio’s equity or debt on or before July 31, 2017, then Elio shall pay to RACER, on or before July 31, 2017, the sum of the unpaid monthly amounts due to RACER under the Note (from October 2016 to July 2017, a total of $1,752,346), irrespective of whether Elio pays CH Capital or CH Capital waives the receipt of Elio’s payment of the $1,250,000 toward the Senior Loan on (or before) such date (per the Second Loan Extension Agreement between CH Capital and Elio)."
So:
1) Elio Motors agreed to these terms;
2) CH Capital Lending, LLC agreed to these terms;
3) RACER Trust agreed to these terms;
4) Folks with an insider's need-to-know obviously have knowledge of an impending capital infusion of some kind that's about to benefit Elio Motors in an amount expected to meet/exceed $25M;
5) Between the $1.75M in overdue payments to RACER Trust, the $1.25M principal payment toward the note secured by CH Capital, and the roughly $37M that was previously documented as being necessary to kickstart the E-series development and evaluation regimen, it seems Elio's magic number is now $40M to at least clear all hurdles to continue operating beyond August 1st.
My takeaways:
-- Per Elio's recent annual shareholder meeting, this document already reflects new jurisdiction of incorporation as being in Delaware - quick turnaround!
-- The $7.5M aggregate fine ($5000 for up to 1,500 jobs not created as promised) that had a once-extended deadline of July 31, 2017 has been once again extended until September 1, 2019.
-- Language pertaining to the forbearance agreement suspiciously alludes to the real-world possibility of Elio Motors amassing significant capital in the coming weeks:
"3. Catch-Up Payment.
If Elio receives net proceeds of at least $25,000,000 in the aggregate from one or more offerings of Elio’s equity or debt on or before July 31, 2017, then Elio shall pay to RACER, on or before July 31, 2017, the sum of the unpaid monthly amounts due to RACER under the Note (from October 2016 to July 2017, a total of $1,752,346), irrespective of whether Elio pays CH Capital or CH Capital waives the receipt of Elio’s payment of the $1,250,000 toward the Senior Loan on (or before) such date (per the Second Loan Extension Agreement between CH Capital and Elio)."
So:
1) Elio Motors agreed to these terms;
2) CH Capital Lending, LLC agreed to these terms;
3) RACER Trust agreed to these terms;
4) Folks with an insider's need-to-know obviously have knowledge of an impending capital infusion of some kind that's about to benefit Elio Motors in an amount expected to meet/exceed $25M;
5) Between the $1.75M in overdue payments to RACER Trust, the $1.25M principal payment toward the note secured by CH Capital, and the roughly $37M that was previously documented as being necessary to kickstart the E-series development and evaluation regimen, it seems Elio's magic number is now $40M to at least clear all hurdles to continue operating beyond August 1st.
booboo
Elio Addict
The really Magic number is that infamous 376million. That is what I believe ElioMotors is working on right now.
Let's just call it 1/2 a billion.
Still a really good deal to get a new mass production vehicle to market.
Let's just call it 1/2 a billion.
Still a really good deal to get a new mass production vehicle to market.
Sailor Dog
Elio Addict
This is HUGE...Thank-you so much for posting & reading the tea leaves on this filing. I agree and it's just a matter of time now...GO ELIO!!!
Sorry about the crappy cut n paste job...But looks like a $10,000 payment was to be made today. I hope this a sign of good things to come, and by the end of July.