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Pulled the money out of my IRA today.
LillyMayPatterson #1685 & #5648
Elio Addict
Serious question. EM says they will cut the Reg A+ funding at $25 million or $30 million or is it $50 million and prorate refunds back to us. So, everybody has a chance to early participate. Then they are going to open it up to the public. Why the prorated refund? It just seems silly. They are going after the greater amount why are we being held back?
LillyMayPatterson #1685 & #5648
Elio Addict
How badly did you get hit Jim H?
I made a commitment of $5K. Don't know just yet how much I will be able to buy
LillyMayPatterson #1685 & #5648
Elio Addict
Did the IRS hurt you?
Sethodine
Elio Addict
The technical cap on what they can get through Reg A+ is $50M. However, they only applied for up to $30M, so they would need to re-apply if they wanted to aim for the $50M limit. (And they only need $12.5M, but $25M will greatly speed up the E-series testing).
The reason they are cutting it off and doing the pro-rated refund option, (aside from the technical limits) is because Reg A+ is the only way in for unaccredited investors, so they want to let as many in as possible. (This means more people materially invested in the company and it's future).
According the the paperwork they submitted to the SEC, the Reg A+ shares are all "diliutable". Thus any over-selling will dilute the value of everybody else' shares. To maintain the highest value for as many people, EM needs to find a sweet-spot balance that puts it somewhere in the middle between share value and # of investors.
Even though shares will be available for purchase after the Reg A+ has closed, this will only be for accredited investors. I don't know how many of us have an income of $200k+ per year, but it certainly ain't me!
LillyMayPatterson #1685 & #5648
Elio Addict
So, This is the only chance for non-accredited investors can invest, even after they open it to the public?
Sethodine
Elio Addict
Yup, only accredited investors, until EM is actually a publicly traded company on the stock market.
slinches
Elio Addict
Yes, the only opportunity for non-accredited investors to participate in the near term is via the Reg A+ offering (i.e. through startengine). After that's closed, you'll have to wait at least until they start trading in the OTC markets and can find someone that's willing to sell. The next opportunity on a significant scale won't be until they have an official IPO on a public exchange (e.g. NYSE or NASDAQ).