Investor Opportunity: A Message From Paul Elio

[Rickb]

This is not the announcement regarding funding that I was hoping for, but it is personal letter from Paul offering a once in a lifetime investment opportunity in EM for only $15K.

 

[goofyone]

so why does Paul approach me when he has retained a wall-street firm that's supposed to be going after deep pockets??
Whatever was tried, whenever it was tried it didn't achieve it's desired outcome, if he's now reaching out to me (His letter was indeed to me). Really doesn't make any sense without getting money the only reason.
For sure I don't expect nor am I entitled to any explanation, but on the surface...........
XII:XXII (late night stuck on Law and order.)
gonna try my portobello salad with mustard dressing, let me know if I should post this recipe -LOL

Why would EM not take advantage of every realistic method to find potential investors? Now that EM is able to publicly advertise this private offering it makes perfect sense to me that they would not simply just sit back and wait for the wall-street firm to do their thing but instead take advantage of their own marketing power to cast the net as wide as possible. The wall street firm is targeting a specific group and EM, via their marketing channels, is trying to let as many people as possible know about this opportunity as they just never know who is out there with the funds and willingness to take a chance on this project.

It is also possible that EM pays less of a commission, or even none at all, if they bring in investors on their own versus if the wall street firm brings the investors. That would mean more money would be available for EM's use.

 

[Past Fanatic]

Sure hope they do better than their past THREE public offerings:

Sep 2011 = offered $10,000,000; got $150,000 ($9,850,000 remaining)(1.5%)
(BDO Capital Advisors, LLC shall receive for the private placement of Issuer's equity securities, a nonrefundable $75,000 retainer, a non-refundable fee of 6% on any new equity financing, and a 5-yr.)
Nov 2011 = offered $10,000,000; got $150,000 ($9,850,000 remaining)(1.5%)
Mar 2014 = offered $30,000,000; got $100,000 ($29,900,000 remaining)( 0.33%)
Mar 2015 = offered $30,000,000; got ????
($2.1 million of which is to be paid to Corporate Fuels Securities as their commission, and another $4 million to be paid to the listed EM board members. )

“On average, companies in this industry sell 59.50% of the total offering size.” The 'average' of ALL Form D filings is 67.77%. In their PAST THREE FILINGS, Elio Motors has SOLD; Sep 2011 = 1.5%, Nov 2011 = 1.5%, Mar 2014 = 0.33%, “The total amount they have raised is 39% lower than the average for a company in the Manufacturing category.”
Difficult selling 'Debt Investment' in a company that is listed as:

Revenue Range=

No Revenues

Filing History

• Elio Motors, Inc. has filed 3 Form Ds since 2008. Of these filings, 3 have been for unique offerings.
• Through these filings, they have raised $400,000.
• They have paid sales commissions totaling $2,400,000.
• They have used $875,000 of the proceeds to make payments to officers and directors of the company.

Looks like they LOST money on their 'past offerings'!
And on this offering, an estimated $6.1 million, is going to 'Corporate Fuels Securities... AND the Elio Motors board members!

 

[BlioKart]

Sure hope they do better than their past THREE public offerings:

Sep 2011 = offered $10,000,000; got $150,000 ($9,850,000 remaining)(1.5%)
(BDO Capital Advisors, LLC shall receive for the private placement of Issuer's equity securities, a nonrefundable $75,000 retainer, a non-refundable fee of 6% on any new equity financing, and a 5-yr.)
Nov 2011 = offered $10,000,000; got $150,000 ($9,850,000 remaining)(1.5%)
Mar 2014 = offered $30,000,000; got $100,000 ($29,900,000 remaining)( 0.33%)
Mar 2015 = offered $30,000,000; got ????
($2.1 million of which is to be paid to Corporate Fuels Securities as their commission, and another $4 million to be paid to the listed EM board members. )

“On average, companies in this industry sell 59.50% of the total offering size.” The 'average' of ALL Form D filings is 67.77%. In their PAST THREE FILINGS, Elio Motors has SOLD; Sep 2011 = 1.5%, Nov 2011 = 1.5%, Mar 2014 = 0.33%, “The total amount they have raised is 39% lower than the average for a company in the Manufacturing category.”
Difficult selling 'Debt Investment' in a company that is listed as:

Revenue Range=

No Revenues

Looks like they LOST money on their 'past offerings'!

I Can make Words Bold Too.

 

[goofyone]

....the FIRST $6.1 million, is going to 'Corporate Fuels Securities... AND the Elio Motors board members!

This is false information. The form says that EM estimates that up to that amount could be used for these purposes so it is possible that much less than $6.1 million could be used in this manner.

Also, if you read the instructions for how this form is filled out payments to the board members can include repayment of loans, and/or interest in loans or do not actually have to be to the board members but also to legal entities, such as companies, which the board members may benefit from. There are plenty of perfectly valid reasons for this kind of transfer which are not necessarily people cashing out and running away.

 

[Past Fanatic]

Hummm, but no 'comment' on the actual CONTENT?

 

[Past Fanatic]

Thanks for the clarification (edited); "people cashing out and running away"..... I never said that; those are YOUR words. I just posted what I READ.

 

[goofyone]

Hummm, but no 'comment' on the actual CONTENT?

I know patience is not really your strong suit but I am doing other more productive things online as well as having fun responding to your misguided informational efforts

"people cashing out and running away"..... I never said that; those are YOUR words. I just posted what I READ.

Yes they are my words as I wrote them. I have to wonder about your reading comprehension skills as I can't find where I accused you of writing that.

Sure hope they do better than their past THREE public offerings:

Sep 2011 = offered $10,000,000; got $150,000 ($9,850,000 remaining)(1.5%)
(BDO Capital Advisors, LLC shall receive for the private placement of Issuer's equity securities, a nonrefundable $75,000 retainer, a non-refundable fee of 6% on any new equity financing, and a 5-yr.)
Nov 2011 = offered $10,000,000; got $150,000 ($9,850,000 remaining)(1.5%)
Mar 2014 = offered $30,000,000; got $100,000 ($29,900,000 remaining)( 0.33%)
Mar 2015 = offered $30,000,000; got ????
...

As far as I know we have not directly heard what happened in 2011 however something must have eventually worked out as EM is still here and actually went on to reboot their effort in Shreveport after this which must have taken a good bit of money.

We know more about what is listed as March 2014. This was originally supposed to happen around mid 2013 and EM explained that they had deals for this money lined up however these fell through thanks to the delay in securing the plant. No matter what the reasons for the delay were it is a fact that IRG was not able to gain contractual control over the plant until May 1, 2014. This extended delay destroyed EM's fundraising opportunities at the time.

 

[Johnny Acree]

Well, I just read most of the replies, and one word kept jumping out at me. The word why.
Why now, why me, why not something else,

Paul said in the letter, people have been asking him, can I invest in Elio Motors?
He is answering the question.
Yes, you can. Here is how, and the SEC rules for this type of investment.

 

[JNR]

You can look at it many ways. I think its a put your money where your mouth is type deal. But I am sure this will give the naysayers ammunition about Elio.

by the way an accredited investor is

An individual to be considered an accredited investor, they must have a net worth of at least one million US dollars, not including the value of their primary residence or have income at least $200,000 each year for the last two years (or $300,000 together with their spouse if married) and have the expectation to make the same amount this year."[7]

The federal securities laws define the term accredited investor in Rule 501 of Regulation D and as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act as:

1. a bank, insurance company, registered investment company, business development company, or small business investment company;
2. an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
3. a charitable organization, corporation, or partnership with assets exceeding $5 million;
4. a director, executive officer, or general partner of the company selling the securities;
5. a business in which all the equity owners are accredited investors;
6. a natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase, or has assets under management of $1 million or above, excluding the value of their primary residence;[8][9]
7. a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;[10] or
8. a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes."[7]

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.