Elio Stock Sale A Success? Has There Been A Press Release?

[TeamCoconutOreo]

I was on the startengine site, I was going to try and buy a few more stocks, but there appears to be no way to do that if you have already invested. Did I miss something?

 

[slinches]

Last I heard there was no way to change your existing share purchase. You can create a new account and use that, but it would be subject to the 50 share minimum. I wouldn't be surprised to see that get fixed eventually, but it may not happen before the offering ends.

 

[Okie51]

I was on the startengine site, I was going to try and buy a few more stocks, but there appears to be no way to do that if you have already invested. Did I miss something?

You can create an alias email account and then create a new login at start engine, but you will have to buy at least 50 shares.

 

[Rob Croson]

Someone was asking in another thread about whether or not EM has the money from the stock offering yet. I can't find that thread, so I'm just dumping this here, as it is related. :/

I just got a letter from StartEngine that my funds from the investment had cleared:

Your transfer of $---- for an investment in Elio Motors has been cleared. If this offering closes, your investment is cleared and can be transferred from the escrow account to the issuing company's account.​

This letter clearly indicates that the EM has NOT actually received any money from the stock offering yet. Nor will they receive a single penny until the stock offering is closed permanently. (When they sell $25M, or it could be Dec 31, 2015, or perhaps that March date, and they apparently have the option to extend beyond even that if they want.) At that point a tally will be made of the totals, all the requisite paperwork filed, and the money handed over to EM in exchange for the stock. The important thing to note is that they don't get the money until we get our stock. If you don't have your stock, they don't have their money. That's really the whole purpose of the escrow account.

It is also still possible for something to go wrong, and for the stock sale to be canceled. The result would be that everyone gets their entire investment returned, and EM gets nothing.

The other important thing to note about this is that any work being undertaken based on the results of the stock sale is probably being done on promises of future payment. That's possibly a good sign, as it shows that the people involved in doing the work are confident that they will eventually get paid.

 

[Chris F]

Someone was asking in another thread about whether or not EM has the money from the stock offering yet. I can't find that thread, so I'm just dumping this here, as it is related. :/

I just got a letter from StartEngine that my funds from the investment had cleared:

Your transfer of $---- for an investment in Elio Motors has been cleared. If this offering closes, your investment is cleared and can be transferred from the escrow account to the issuing company's account.​

This letter clearly indicates that the EM has NOT actually received any money from the stock offering yet. Nor will they receive a single penny until the stock offering is closed permanently. (When they sell $25M, or it could be Dec 31, 2015, or perhaps that March date, and they apparently have the option to extend beyond even that if they want.) At that point a tally will be made of the totals, all the requisite paperwork filed, and the money handed over to EM in exchange for the stock. The important thing to note is that they don't get the money until we get our stock. If you don't have your stock, they don't have their money. That's really the whole purpose of the escrow account.

It is also still possible for something to go wrong, and for the stock sale to be canceled. The result would be that everyone gets their entire investment returned, and EM gets nothing.

The other important thing to note about this is that any work being undertaken based on the results of the stock sale is probably being done on promises of future payment. That's possibly a good sign, as it shows that the people involved in doing the work are confident that they will eventually get paid.

Elio has until December 31, 2015 to sell the minimum. Once they sell the minimum ($12.5 MM), Elio can break escrow, accept the funds and issue the stock. The actual process of stock issuance could take 5 to 10 days. Once the minimum is in escrow, the timing is up to them. Based on the wording of the announcement about going forward, I think they have enough in escrow to close at least the minimum. Once they have an initial closing, Elio can sell until the offering termination date, which is March 31, 2016 and extendable at their option. I would expect a press release and an amendment to the offering circular when they decide to break escrow.

 

[Rob Croson]

So there can be multiple "closings"? That should help out. It will allow them to get some of the money, while still soliciting for more. But even so, they can't actually get the money without issuing the corresponding stock.

I agree that their announcement definitely sounded like they had passed the minimum. Over a week later, and they still haven't reached the $25M limit, though, makes me wonder how much they have actually managed to sell. A giant chunk of that $45M never came through. I hope it does by the time they close the sales.

 

[bunchathrees]

Rob, was that snail mail?

 

[Rob Croson]

No it was an email. The confirmation that my investment funds had cleared. Just got it today.

 

[Chris F]

So there can be multiple "closings"? That should help out. It will allow them to get some of the money, while still soliciting for more. But even so, they can't actually get the money without issuing the corresponding stock.

I agree that their announcement definitely sounded like they had passed the minimum. Over a week later, and they still haven't reached the $25M limit, though, makes me wonder how much they have actually managed to sell. A giant chunk of that $45M never came through. I hope it does by the time they close the sales.

Multiple closings are the usual routine. At this point, we don't know how much is actually clear funds. I wonder how much of the $45 MM was "spoofed"?

 

[KenK]

No it was an email. The confirmation that my investment funds had cleared. Just got it today.

"Hi Kenneth,

Your transfer of $x for an investment in Elio Motors has been cleared. If this offering closes, your investment is cleared and can be transferred from the escrow account to the issuing company's account."

I got that notice on December 4th. I invested the day it was available.