July 31st, 2017 - Tick Tock...

[KenK]

From the last SEC document in June:

"As a result of these agreements, Racer Trust agreed to forbear on enforcing the payments due under the Issuer’s promissory note from October 1, 2016 to July 31, 2017. If the Issuer receives net proceeds of at least $25,000,000, in the aggregate from one or more offerings of the Issuer’s debt or equity securities on or before July 31, 2017, the Issuer must pay to Racer Trust, on or before July 31, 2017, the sum of the unpaid monthly amounts due to Racer Trust under the promissory note. Default interest of 18% per annum will continue accruing until the monthly payments of $173,500 are resumed on August 1, 2017. In addition, the maturity date of the note was extended from July 1, 2017 to July 31, 2018."


"The Issuer had agreed to use and develop the Shreveport, Louisiana manufacturing facility so as to create at least 1,500 new jobs by February 28, 2016, with a penalty of $5,000 for each full-time, permanent direct job that fell below the required amount. This deadline was extended to July 1, 2017 and has again been extended to September 1, 2019."

That doesn't sound like they are too optimistic about shipping in 2018.

 

[RUCRAYZE]

2019 ICE will be very old technology -and I too will continue to get older and need ICE for my bad back

 

[booboo]

Stop staring at me !
https://media.licdn.com/mpr/mpr/shrinknp_200_200/p/2/000/050/382/3bb3bfb.jpg

 

[KenK]

Stop staring at me !
https://media.licdn.com/mpr/mpr/shrinknp_200_200/p/2/000/050/382/3bb3bfb.jpg

It is a haunting stare.

 

[Ty]

So... If Elio were to scrounge up $26M before 31 July, they have to pay a big chunk of that to Racer Trust but if they raise the money AFTER 31 July, they don't have to pay anything to Racer Trust. They'll accrue interest but that can be paid later once the company is up and running... I'd hold off if I were Elio. I mean, I'd hate to raise $26M and then lose $15M or so of it instantly... I'd rather just accrue interest charges till the company was making enough profit to pay it off.

 

[KenK]

If I read it right, if they don't make the payment by July 31'st, then they have to start making monthly payments of $173K on August 1st AND pay 18% interest. I think right now they aren't repaying anything, but that ends on the 31st. So it seems like very bad news. I could be misunderstanding, this wording is not clear to me. RACER Trust was forbearing/refraining from requiring EM to make payments as part of the previous agreement. That's about to go out the window. I don't think EM even has enough capital to make that August payment. Paul will have to give up stock? Maybe RACER takes control of EM due to this?

 

[KenK]

OK reading that SEC excerpt again, I think it is clearer to me now. If EM comes up with $25mil before July 31st, they must use that to pay RACER all of the monthly back payments that RACER was forbearing on up until July 31st. This waiving of monthly payments wasn't a gift, this balance was earning RACER 18% interest per year. Come 1 August, Elio must start making monthly payments of $173K. It kind of reads like there will be no additional interest accrued on this balance after July 31st, he just has to pay it down monthly.

 

[Watashiwah]

OK reading that SEC excerpt again, I think it is clearer to me now. If EM comes up with $25mil before July 31st, they must use that to pay RACER all of the monthly back payments that RACER was forbearing on up until July 31st. This waiving of monthly payments wasn't a gift, this balance was earning RACER 18% interest per year. Come 1 August, Elio must start making monthly payments of $173K. It kind of reads like there will be no additional interest accrued on this balance after July 31st, he just has to pay it down monthly.

Interesting. Although there is earlier interest accrued on the already owed money, the loan essentially stops if EM cannot get 25 million by that date? It would dissuade me to acknowledge getting the 25 million then since I'd be already in arrears with no way to pay up until that moment I acknowledge the newly found money. Of course, if I thought that 25 million was blue sky, i might as well (and would have to anyhow) let the clock run and start owing another $173 K/month too. Why not? There is apparently only $101 k in the coffers, and that was months ago with not very many new reservations. One cannot pay what they don't have, or have successfully 'spent' or hidden away.

It's going to be really hard to look viable after 31 July.

 

[dbatch1715]

" It's going to be really hard to look viable after 31 July. "

Unless there are some more reservations from the unenlightened or a White Knight Investor.

I'm confident that my $500.00 was wasted and even if someone else picks up the scraps, they will not honor any pricing or reservation bonus promised.

 

[booboo]

" It's going to be really hard to look viable after 31 July. "

Unless there are some more reservations from the unenlightened or a White Knight Investor.

I'm confident that my $500.00 was wasted and even if someone else picks up the scraps, they will not honor any pricing or reservation bonus promised.

"Elio Motors, our team, our blue chip suppliers and board of directors are working diligently every day on fundraising and vehicle development to move closer to production and bring jobs to the region." - Paul Elio