Arclatex Nbc Broadcast

ks6c said:

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.

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TCBronson said:

It does make you wonder what happened to the interest, was it all hype, sabotage, or folks pledging more than they were really able to in an effort to send a message to the government or who ever, that there is a lot of interest. If all the pledges had come in, that may have helped EM get to production a little sooner.

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KenK said:

16... 17... what's a million dollars among friends?

I think expressed interest might have been 43, but the difference doesn't change anything. Thats a lot of money to evaporate, but probably not uncommon when people aren't held accountable.

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Jeff Porter said:

Thanks for this John.

Interesting tidbit toward the end there from Paul: "... as we speak, here in Detroit, there are engineers detailing out the parts, so we can begin manufacturing and start building the 25 engineering vehicles."

Any ideas on a date when Paul said that? Was during the Detroit show, but what's a guess on the date?

So whatever that date is, it sounds like they had not started on the E-series yet. Bummer. Disappointing.

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Elio Amazed said:

Again, just to be precise, according to EM's own words, it's "to begin development of the E-Series".

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CrimsonEclipse said:

We "only" made $17 million out of a $12 million goal?

We're doomed.... DOOOOOOOOOOOOOOOOMED!!!

(sarcasm tag for the sarcastically impaired)

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