Nasdaq Listing Requirements...tough Set Of Standards...

[W. WIllie]

Thanks LMP, lots of reading to do, so I had better get busy.

 

[gottemfeathers]

I'm getting caught up on my reading and noticed an interesting story in the 9/1/17 Wall Street Journal. It was titled NASDAQ Aims to Ease Rules for Some IPO's. It's not specifically addressing the Elio type IPO, it's more like a "same church, different pew" story in relation to an Elio type offering. It discusses IPO's for special purpose acquisition companies (SPACs). Apparently the NASDAQ and the NYSE are competing for SPAC listings. Some interesting info from the story:

-they call this a "blank-check" type of offering as the SPACs have no assets or track records. The SPACs are supposed to use the proceeds of the IPO to make acquisitions
-the WSJ says it means that "investors are buying shares in companies with no track record based on the credentials of their management team". These companies (SPACs) have no operating history.
-In 2017, year to date, there have been 22 blank-check IPO's that have raised $6.9 Billion
-This accounts for 22% of the total IPO market in 2017 (year to date)

OK, you may be saying "so what, this does not apply to Elio". My take away is this means that the NASDAQ ( and the NYSE) is allowing companies with no revenue to raise "big" money (billions). Elio is trying to raise $100 million, a small fraction of what these companies are raising. I know that there are many who read this forum that think that Elio will never be able to raise $100 million on the NASDAQ. I think they have a chance.

I don't have a link for the story as I read the paper edition of the WSJ but if you have the web based version of the WSJ I'm sure you can find it.

 

[pistonboy]

We all do, because no one knows what is going to happen!

Yes, we all do speculate, but I find if someone posts something others do not like, then others demand proof.

If they post something others do like, then proof is not demanded.

 

[pistonboy]

If EM defaults on its next payment to Lichter and he takes the Elio name, I speculate the company will have a new name. I also speculate big investors with deep pockets will fully fund the company and take over its management. Paul Elio would move from CEO to a powerless position with a name like “Executive Consultant”.

Stu Lichter has been referred as the angel of birth for EM, making it possible. He may also be its angel of death. He would also be the angel of rebirth of a new company it its place.

He may be forcing things to finally happen.

 

[LillyMayPatterson #1685 & #5648]

If EM defaults on its next payment to Lichter and he takes the Elio name, I speculate the company will have a new name.

When is that due?

 

[Doug McDow]

Yes, we all do speculate, but I find if someone posts something others do not like, then others demand proof.

If they post something others do like, then proof is not demanded.

The only one that I want proof from is Elio! I kid a lot, and I do not want to offend anyone !

 

[Elio Amazed]

If EM defaults on its next payment to Lichter and he takes the Elio name, I speculate the company will have a new name. I also speculate big investors with deep pockets will fully fund the company and take over its management. Paul Elio would move from CEO to a powerless position with a name like “Executive Consultant”.

Stu Lichter has been referred as the angel of birth for EM, making it possible. He may also be its angel of death. He would also be the angel of rebirth of a new company it its place.

He may be forcing things to finally happen.

Stu Lichter cannot take the Elio name. Not since Paul basically allowed a lien to be put against it by RACER trust. Completely different loans. Completely separate entities. Stu has absolutely nothing to do with the 23 million owed to RACER trust by EM. Nor does he have anything to do with RACER trust as far as the Shreveport plant is concerned. Regarding Stu taking over via other avenues, Stu doesn't own anywhere even remotely close to 51% of the stock. As far as Stu calling in his loans that were made to EM, much of that has been taken care of by issuance of stock, including the rent on the plant sub-lease. If Stu were to go against his best interest and call in the remainder owed on any loan that may not have been handled in that manner, there's almost no chance that the company (under any name) would be automatically handed over to him intact by any legal entity. The most likely scenario would be that Stu would be forcing the company that he has a substantial interest in into bankruptcy. That just doesn't make sense. There are / would be a lot of people standing in line if that were to happen. Stu would just be one of those people. IMHO, the lien was a wise move on EM's part. RACER trust's sole interest is to divest itself of abandoned auto industry property in a manner beneficial to area communities. The last thing they want to do is be in the autocycle business. I believe that EM believes that they can trust RACER to act in EM's best interest. The lien takes a lot of EM's worth off of the chopping block as far as anyone else that might consider calling in outstanding debts. In other words, it might cause anyone else to be far less likely to foreclose on their loans/debts, because it's made doing so less than worth their while.

 

[pistonboy]

Stu Lichter cannot take the Elio name. Not since Paul basically allowed a lien to be put against it by RACER trust. Completely different loans. Completely separate entities. Stu has absolutely nothing to do with the 23 million owed to RACER trust by EM. Nor does he have anything to do with RACER trust as far as the Shreveport plant is concerned. Regarding Stu taking over via other avenues, Stu doesn't own anywhere even remotely close to 51% of the stock. As far as Stu calling in his loans that were made to EM, much of that has been taken care of by issuance of stock, including the rent on the plant sub-lease. If Stu were to go against his best interest and call in the remainder owed on any loan that may not have been handled in that manner, there's almost no chance that the company (under any name) would be automatically handed over to him intact by any legal entity. The most likely scenario would be that Stu would be forcing the company that he has a substantial interest in into bankruptcy. That just doesn't make sense. There are / would be a lot of people standing in line if that were to happen. Stu would just be one of those people. IMHO, the lien was a wise move on EM's part. RACER trust's sole interest is to divest itself of abandoned auto industry property in a manner beneficial to area communities. The last thing they want to do is be in the autocycle business. I believe that EM believes that they can trust RACER to act in EM's best interest. The lien takes a lot of EM's worth off of the chopping block as far as anyone else that might consider calling in outstanding debts. In other words, it might cause anyone else to be far less likely to foreclose on their loans/debts, because it's made doing so less than worth their while.

Regardless of the mechanism, I suspect this is part of a plan to get Paul Elio out and bring in new management with big money. If the company no longer bears his name, Paul Elio will probably be more flexible and less insistent on control. He may very well step aside.

 

[Samalross]

Stu Lichter has the building and the lien on the equipment, he has all the control that counts

 

[Watashiwah]

Elio Amazed said: "As far as Stu calling in his loans that were made to EM, much of that has been taken care of by issuance of stock, including the rent on the plant sub-lease. If Stu were to go against his best interest and call in the remainder owed on any loan that may not have been handled in that manner, there's almost no chance that the company (under any name) would be automatically handed over to him intact by any legal entity. The most likely scenario would be that Stu would be forcing the company that he has a substantial interest in into bankruptcy. That just doesn't make sense."

I totally agree, and would like to take this one step further: Has Stu made any overtures that he even wants to be in the Automotive Industry? Stu is a Real Estate guy, and a successful and busy one. One thing tho, Stu, at the core is a Business Man with stock (OTC) in Elio garnered by purchase, issuing loans, and by relaxing debt, the debt and loan part alone I believe is upwards of $25 million (separately remember that Paul's Elio Engineering has something like $27 million tied up in OTC stock too).

Any business men with this much owed and in the form of potentially worthless (or less than the 6 dollars/share most the debt was struck at) OTC stock, would most certainly benefit from a NASDAQ listing even if it dilutes the OTC values.

I argue that when all is weighed: The $100 million is only about 1/3 needed to substantially get EM 'on the road,' the amounts tied up in debt to the Principals, the amount tied up in overall debt (maybe $87 to $100 million?) which could be further deferred, and the lack of real auto experience and zeal that the NASDAQ listing will not happen unless EM can bring to their Board of Directors real Automotive Industry Titans with unquestionable and successful histories with no real estate conflicts and knee jerk solutions.

What will be interesting is if the decision and status fron NASDAQ will be hidden from public view as the ATVM decision was and we are further left to drift aimlessly watching for telltale signs as the stock price mysteriously stays at about the same impossible price.