The E-series Build.

[Rob Croson]

Since it was such a experiment, the only result that actually lands on Elio Motor's head is if the E series gets financed or not. Start Engines will have to pay the price if there was a fail or not measuring up on 'percentages'.

It was definitely a learning experience. It makes you wonder if this will be norm on other Reg A+ funding projects in the future. Is a 50% turnout going to be a good showing, a poor showing, or just average? And maybe it will allow the StartEngine people a chance to refine their process to make things more accurate on future projects.

 

[ks6c]

In conversations with folks in the biz, a typical expectation for conversions of "expressions of interest" to actual purchase is around 50%. Before the creation of the RegA+ process when only accredited investors could play, requesting a prospectus would have been considered an expression of interest, for example. So "allowing" $50mio in expressions of interest makes sense when your fund-raising target is $25mio. Conversely, when the new process only allows for a maximum solicitation of $50mio, it is prudent to say you're only looking for $25mio.

Remember that this process added another wrinkle never seen before - you HAD TO express an interest to get a place in line to purchase shares if/when they became available. Deciding later to invest would do you no good if you didn't have a place in line, and that likely created a sense of urgency that drove many placeholders, knowing that you could decide later - without penalty - to not invest. So.......likely penalty if you don't decide now, no penalty whatsoever if you hedge your bets and decide later. Simple decision.

I don't think it's reasonable at all to use the word failure to describe the results here. In fact, I think the word disappointing can only be used in the sense that "I'm disappointed that production dates have slipped" when my gut expectations from the beginning were that a project of this complexity had/has a much higher likelihood of schedules slipping than not.

This RegA+ is an entirely new process, and the industry will undoubtedly use this experience to start building new expectations. I'd be willing to bet the 50% expectation gets revised downward for the next fundraiser of similar magnitude.

 

[Ekh]

In conversations with folks in the biz, a typical expectation for conversions of "expressions of interest" to actual purchase is around 50%. Before the creation of the RegA+ process when only accredited investors could play, requesting a prospectus would have been considered an expression of interest, for example. So "allowing" $50mio in expressions of interest makes sense when your fund-raising target is $25mio. Conversely, when the new process only allows for a maximum solicitation of $50mio, it is prudent to say you're only looking for $25mio.

Remember that this process added another wrinkle never seen before - you HAD TO express an interest to get a place in line to purchase shares if/when they became available. Deciding later to invest would do you no good if you didn't have a place in line, and that likely created a sense of urgency that drove many placeholders, knowing that you could decide later - without penalty - to not invest. So.......likely penalty if you don't decide now, no penalty whatsoever if you hedge your bets and decide later. Simple decision.

I don't think it's reasonable at all to use the word failure to describe the results here. In fact, I think the word disappointing can only be used in the sense that "I'm disappointed that production dates have slipped" when my gut expectations from the beginning were that a project of this complexity had/has a much higher likelihood of schedules slipping than not.

This RegA+ is an entirely new process, and the industry will undoubtedly use this experience to start building new expectations. I'd be willing to bet the 50% expectation gets revised downward for the next fundraiser of similar magnitude.

My goodness! another adult enters the room.

 

[larryboy]

My situation might explain what happened to the 40+ million in expressed interest. When the window opened I pledged 1K. The numbers climbed slowly and I thought that the offering might not fly so I raised my pledge to 3K. The numbers went well over the 25 Mill needed and then I got an e-mail that sounded like Elio stock would probably be the worst investment I could possibly make. I am sure that the Elio will be a success but it did not seem like I would get my money back even if it was. Since it appeared that they had plenty of money I reduced my investment to 2K. If they had not gotten enough money to start building the E models I would have been willing to put that 3rd thousand back in the pot.

 

[Okie51]

At the LA auto show I actually had the opportunity for a nice long chat with Brian Critchfield, EM's VP of Digital Marketing, who by the way was enjoying his first time out to a tour event. While he was not allowed to discuss the stock sale very much he was able to tell me that EM's biggest concern with the StartEngine process for testing the waters was that all they had was an email address for each person and no other way to contact them to let them know that the seven day window was now open. He told me that four days, and three notification emails, after the sales window opened they had registered less than half the intended recipients even opening the email let alone clicking though and/or logging in to the StartEngine site. It is too early to know what is really going on however I do have to wonder if was correct to be concerned about this aspect of the deal and if this did indeed play a role if they are indeed short of their goal.

G1, Is there a way I can increase my investment? I tried using StartEngine site but it just lets me look at my current investment. I sent a message to them via chat and they responded saying someone would check it out. I hope to receive something from them after work today. I enjoy all the info you provide on this site. Thanks.

 

[Elio Amazed]

We can also assume that, since they say they have enough to go ahead with the E series vehicles, that they have at least the $12.5M.

Not really.

EM has made similar ambiguous statements before.
They seemed pretty good at practicing CYA.

"Uhm, sorry, we've come to understand that there was some confusion about what we meant."

Your quoted statement says, "...go ahead with..."
As in "Start". Sound familiar?
It does not simply say "build" or "complete".
Huge difference.

 

[ks6c]

My goodness! another adult enters the room.

I have 2 mottos that I live by:

"I may be growing older, but I refuse to grow up!", and;

"You're only young once, but you can be immature forever!"

"Adult" is not something I'm called very often <LOL>

 

[slinches]

Your quoted statement says, "...go ahead with..."
As in "Start". Sound familiar?
It does not simply say "build" or "complete".
Huge difference.

Except that in this round of funding, they needed to reach at least $12.6 million (enough to complete the E series) to get any money at all. If that number was not reached, the share sale would be cancelled and all investments refunded. Saying they can "go ahead with" the E series in this case must* mean they hit that mark.



*Well, almost certainly. I guess PE could have found a bag with tens of millions of dollars in it along the side of the road or something.

 

[Johnny Acree]

Just as a refresher of what the SEC DOC said, nothing more.

USE OF PROCEEDS

We estimate that, at a per share price of $12.00, the net proceeds from the sale of the 2,090,000 shares in this offering will be approximately $22,740,000, after deducting the estimated offering expenses of approximately $2,340,000. If only the minimum number of 1,050,000 shares is sold, the net proceeds will be approximately $11,350,000 after deducting estimated offering expenses of $1,250,000.

The net proceeds of this offering will be used primarily to fund the effort for the next stage of our development plan, which is to build and analyze 25 prototype test vehicles. The prototype test vehicles will be used in rigorous experiments for safety and performance, among other things. This stage is anticipated to take four to six months.

Accordingly, we expect to use the net proceeds as follows:

well it won't copy and paste but here is a link http://www.sec.gov/Archives/edgar/data/1531266/000121465915007920/partiiandiii.htm

 

[Mel]

I have 2 mottos that I live by:
"I may be growing older, but I refuse to grow up!", and;
"You're only young once, but you can be immature forever!"
"Adult" is not something I'm called very often <LOL>

Growing old is mandatory. Growing up is optional.
I'm having way too much fun to grow up!