Investor Opportunity: A Message From Paul Elio

[John Painter]

Here you go! Very helpful video from Paul and all the info anyone needs to invest, provided you're qualified.
http://www.eliomotors.com/investor-inquiries/

 

[RUCRAYZE]

So where is Bain Capital?? (they have connections in the auto industry) lol

 

[Nicul8]

I went to check the reservation counter today and found this: http://www.eliomotors.com/investor-inquiries/

So the question of when/how it goes public is somewhat answered. Also, I don't think Paul Elio was reaching out to "you" as an individual, expecting you to contribute. Many reservation holders have inquired about how they can invest, and so he sent this email for the benefit of those people. The e-mail also served as a heads-up so that you weren't surprised when you saw the tab on the website.

I think this is a step that many have been asking for. I think they just got into a position where this is possible without as many negative side effects. And that could be related to what other have been saying about the change in federal law.

 

[Chris F]

This move is not a new idea for EM at all but is simply EM adapting previous ideas into the current plan in order to meet their goals. This is what is known as a private placement and this is actually EM's fourth attempt at doing this since 2011. We know this from Elio Motors filings with the SEC. So contrary to the popularly held, but mistaken belief, Paul Elio and the EM board are not doing anything with this offering that they have not been prepared to do all along.

The noticeable difference between this offering and previous EM private placements is that thanks to a relatively recent change in federal law EM is now allowed to advertise this offering publicly. This is why EM has also hired the broker dealer, Corporate Fuels Securities, to assist with marketing this private placement to investors.

Another difference which we know from the SEC filing related to this offering is that officially this is offering is being sold as debt and not equity. I believe this is a ploy to make the investment more appealing by selling convertible bonds which is a bond that is convertible to equity. This means that officially the investors in this round of funding would be bond holders who can opt to either receive their bond payments or accept equity in the company. Bond holders are also ahead in line if the company were to fail so theoretically they would stand a chance at recovering some portion of the investment if that were to happen. This would make the investment safer than simple equity investing thus should make it easier for EM to find investors.

I'm a little surprised at the reactions here. People have been asking for a chance to invest in Elio; now that they have, why is that bad??? Because of the exemption they are using, they are able to use public solicitation. They have an existing base of people willing to put up cash. Why wouldn't they ask the reservation holders? A broker/dealer would give his eyeteeth for a large list of possible new investors that he did not have to develop himself.

 

[RUCRAYZE]

Here you go! Very helpful video from Paul and all the info anyone needs to invest, provided you're qualified.
http://www.eliomotors.com/investor-inquiries/

thanks, he mentioned 90% American parts. I think that's a new number.I thought the past 85% was high

 

[Chris F]

I trust that you are correct, and that would mean only someone truly in the top 1% could invest, so I guess Paul is hoping somewhere around 400 reservation holders might pony up.

Actually, a lot more than the 1% meet the criteria for accredited investor. Before they amended the rules, you could count the equity value of your home and a lot of people qualified that do not any longer.

 

[Chris F]

Since EM is using the 506(c) exemption, it only makes sense to solicit the reservation holders. Its an existing database of people with an interest in making this project succeed. Personally, I was surprised that the minimum investment was only $15,000. For an offering this size, that's pretty low and means a lot of paperwork if too many only put in the minimum.

 

[Ty]

I'll add here that that video is now my favorite.... anyone else notice the muffler out by the rear tire at about the 10:30 minute mark?

http://www.eliomotors.com/investor-inquiries/

 

[Ekh]

If only I had $15K to risk -- but I don't. I thought this was a masterful pitch, and explained some things more clearly than they had been. I'm sure part of the logic of this play for small investors is that we would never have the control that block investors require -- nor would we want it. That's got to be important to Paul (heck, I know it is). Only downside -- it suggests that the company really is having trouble landing the whales they want and is giving us minnows a chance to nibble.

 

[Neal]

I'll add here that that video is now my favorite.... anyone else notice the muffler out by the rear tire at about the 10:30 minute mark?

http://www.eliomotors.com/investor-inquiries/

I like this a lot as well. Though I was very disappointed Paul wasn't holding his Starbucks!