Elio Crowdfunding

[bowers baldwin]

 

[outsydthebox]

Ekh, Outsyd got 2 day old mail. I got it and was encouraged to call my friend and tell her to pledge. People ask all the time about how they can help. Elio just told us how we could. I think it was wonderful. Made me feel like part of the team.

Yeah, what she said! I must admit "urgent plea" was merely my assessment of the E mail and not necessarily what EM actually said. But, I can't say that they "didn't" , as I only read it once.

 

[BADBOY]

I don't know what that "urgent plea" business was about, since when it came out it was clear we'd meet the goal. Kind of leaves a bad taste in the mouth. No reason given for the urgency of the plea, or why it was needed. I'm glad we're doing fine, but I don't think the plea was a significant factor -- though perhaps it was after all. Don't have any way of knowing how many people upped their "interest level" or stirred friends / colleagues into action. Kind of reminds me of NPR pledge drives.

Elio is, by the way "delighted" with the success of the program and thinks it will translate into solid sales when the SEC approves the actual solicitation. I'd be thrilled, too, if I'd raised 25+ million bucks in about five weeks! Now let's see some action on the P series!

They did not raise $25 million. They got a list of folks who "say" they will commit x amount of dollars and those folks cannot be held to their offer. Interested in why it takes one million dollars per car to get the next 25 built.

 

[JEBar]

They did not raise $25 million. They got a list of folks who "say" they will commit x amount of dollars and those folks cannot be held to their offer. Interested in why it takes one million dollars per car to get the next 25 built.

that question has been repeatedly addressed in this and other threads .... the money goes for much more than building the cars .... things like paying suppliers of brand specific parts to help cover their expenses related to gearing up to produce the products, designing and building the jigs that will be used to build subsequent trikes/engines and in setting up the assembly line, safety crash testing, other testing

 

[AriLea]

They did not raise $25 million. They got a list of folks who "say" they will commit x amount of dollars and those folks cannot be held to their offer. Interested in why it takes one million dollars per car to get the next 25 built.

That's actually not bad. Back in 1980 the typical pre-production prototype was 6million for big industry. Thank goodness things are more efficient now.

 

[AriLea]

Last money posting for tonight?... $25,379,000

 

[JEBar]

nope, its jumped another $500 in the last 5 minutes ..

 

[Cache Man]

Okay... So what does this mean? Is it to use as leverage for the loan to show interest?

 

[JEBar]

much speculation but little firm facts .... per EM, this funding will be used for the next stage of development .... production of a number of prototypes, conducting a range of safety and performance test, funding suppliers of brand specific parts, producing jigs to be used in manufacturing the Elio and its engine, and so-on

 

[HHH]

Happy to see EM achieved their revised goal of $25 million expressions of interest in the "testing the waters" phase of this potential stock offering. Note all the qualifiers. Please remember that should this funding be pursued (highly likely), this will be a PUBLIC offering. This means it is open to the public at large. Each participant thus far has merely provided a convenient e-mail address to receive the actual solicitation in the form of a prospectus.

In contrast with EM reservations, there is no line you (and I) are standing in. In a standard IPO, if the offering is anticipated to be oversubscribed, the issuer can increase the number of shares offered; this is what Facebook did. I have not seen any guidance as to whether the A+ regulation would permit this.

Significantly, the "testing the waters" phase began with a goal of the maximum permitted by the regulation, i.e., $50 million. Did EM receive guidance that this likely could not be achieved in the time they allotted? Now that would be a good question to have answered. And most importantly, does this mean that this potential offering would only raise half as much capital as was initially hoped for?