What Is The Status Of The Atvm Loan?

[LillyMayPatterson #1685 & #5648]

I enjoyed this thread. The Elio ATVM loan application has been in process for two years come mid next month. Seems like a long time, but it has been moving along. October 2014 we celebrated the application hitting the second phase and in January 2015 we celebrated it going into the third. Yes, I believe the SEC is wanting validation and elio is working very hard to prove it. Looks to me like a win - win.

 

[WilliamH]

ATVM approval would bring investors and lenders out of the woodwork. In effect the loan guarantee not only dilutes risk for lenders, it sends a very strong message that this project is a go.

The ATVM is a low interest loan, not a loan guarantee!

 

[Marshall]

The ATVM is a low interest loan, not a loan guarantee!

True, but it's only to cover expansion and renovation costs.

Operational costs must be handled separately. Those loans or stock sales will be helped if they've met their ATVM requirements and safety goals through testing. I believe they would prefer low cost loans to stock sales, but both are options to consider if the loan rates quoted are too high.

I'm sure someone will correct me if I'm wrong, but it seemed less than 10% of stock has been issued and most of that went to the Board. The stock traded on OTCQX is a fraction of a fraction of that total. This keep the company firmly under Paul's control. This is why I believe the loans are preferred.

If anyone has a link to the latest stock ownership breakdown, I'd love to see it.

I found this from March 2016;

Common stock, no par value, 100,000,000 shares authorized,
25,077,500 shares issued and outstanding
Convertible share options 1,331,941 -

So if I have it right, there are 73,590,559 shares available without any additional authorization required. I believe the par value on the Reg A+ sales was about $10 or would account for about 5,000,000 of those shares with a current market price of $20/share or $100,000,000. While you might expect additional sales of authorized stock to bring that price/share down, moving into production might overcome the supply availability with even greater demand and maintain or even increase price/share.

If we sustain the $20/share level, then the operating budget requirements for 250,000 vehicles at $5k per unit would be $1,250,000,000 or 62,500,000 shares worth. Now there should be income coming in almost immediately which would mitigate the need for that size issuance, but it is financially feasible as a funding alternative.

 

[WilliamH]

True, but it's only to cover expansion and renovation costs.

Operational costs must be handled separately. Those loans or stock sales will be helped if they've met their ATVM requirements and safety goals through testing. I believe they would prefer low cost loans to stock sales, but both are options to consider if the loan rates quoted are too high.

I'm sure someone will correct me if I'm wrong, but it seemed less than 10% of stock has been issued and most of that went to the Board. The stock traded on OTCQX is a fraction of a fraction of that total. This keep the company firmly under Paul's control. This is why I believe the loans are preferred.

If anyone has a link to the latest stock ownership breakdown, I'd love to see it.

Try reading this ---> http://www.energy.gov/lpo/atvm <---
Or this ---> http://www.energy.gov/lpo/atvm-project-eligibility <---

 

[Marshall]

Try reading this ---> http://www.energy.gov/lpo/atvm <---
Or this ---> http://www.energy.gov/lpo/atvm-project-eligibility <---

Yes. As I stated. The factory loan, and not the operational budget.

The ATVM loan program provides direct loans to automotive or component manufacturers for reequipping, expanding, or establishing manufacturing facilities in the U.S. that produce fuel-efficient advanced technology vehicles or qualifying components, or for engineering integration performed in the U.S. for advanced technology vehicles or qualifying components.

 

[Muzhik]

Ok, this has been tip toeing at the line of politics; can we step back and find a better direction to take.

Religion?

I thought the Elio WAS a religion, encouraging the faithful to preach the message to kith and kin; fighting the Arcimoto heretics; awaiting the promised arrival...

 

[Marshall]

Religion?

Please don't do that to me. I will defend the faith until I get banished.

 

[Coss]

Ok, well I guess I need to close the thread then

 

[Ekh]

The ATVM is a low interest loan, not a loan guarantee!

It is a guarantee that any loan will be repaid. The low rate results from the absence of risk. Please. Reheck your facts.

 

[WilliamH]

It is a guarantee that any loan will be repaid. The low rate results from the absence of risk. Please. Reheck your facts.

Facts.... ---> http://www.energy.gov/lpo/atvm <---
Paragraph 2
..."The ATVM loan program provides direct loans to automotive or component manufacturers for reequipping, expanding, or establishing manufacturing facilities in the U.S. that produce fuel-efficient advanced technology vehicles or qualifying components, or for engineering integration performed in the U.S. for advanced technology vehicles or qualifying components."...