New Sec Filing

[Donnyboy]

Both articles say:

"The Elio is still in development, and we do not expect to start delivering to customers until 2019," the filing said.

On the bright side I can postpone cleaning up the garage another 2 years.

 

[Rob Croson]

Some interesting stuff in the report.

Looks like Stuart Lichter is still all-in. He converted millions of dollars of debt into stock, and then bought more stock on top of that.
"Subsequent to year-end 2016, Mr. Lichter converted over $8.5 million of loans and accrued interest into shares of Common Stock, extended the maturity dates of other loans to July 2018 and January 2019, and purchased 100,335 shares of Common Stock for $600,000."

As a result, Stuart Lichter now owns 9 million shares of EM stock, which is just a hair under 1/3rd of all outstanding shares.
"Stuart Lichter(2) 9,036,917 29.3%"

No vehicles deliveries anticipated until 2019?
"We have not yet generated any revenues and do not anticipate doing so until the first half of 2019."

Still predicting very high MPGs.
"The Elio is expected to achieve 92 mpg measured under the CAFE test method. On the other hand, the Elio’s projected 84 miles per gallon is a highway mileage number, which is based on EPA’s test method, which involves real-world driving conditions."

Ken Way and James Holden each loaned EM $100k, and then converted that debt into stock shares:
"In November 2016, James Holden and Kenneth Way each loaned $100,000 to us. We issued convertible unsecured notes due September 30, 2022 to them, which were convertible into shares of our Common Stock at any time prior to their maturity in 2022 at an initial conversion price equal to $15.00 per share. The convertible notes contained a “most favored nation” clause. The notes accrued interest at the rate of 5% per annum, payable at maturity. In April 2017, Messrs. Holden and Way converted their loans and accrued interest into 17,078 and 17,080 shares of Common Stock, respectively."

Not exactly sure what this all means:
"At this point, including the proceeds of this offering, we currently estimate we need to raise approximately $376.6 million of new investment (of a total budget of $531.2 million) to fund production activities through cashflow positive. This amount is exclusive of (a) $110.5 million which we assume will be obtained through additional reservation deposits, (b) sales margin of $44.1 million which we assume will result from our initial customer deliveries of the Elio. "

$376M gets them to "cashflow positive". But that doesn't get count almost $155M that they are counting on from additional sales and profits.

This table is interesting:

And there's lots of other things in that prospectus that I just don't have a prayer of understanding.

 

[Elio Amazed]

Here we go again.
Honestly folks, if they can't get this thing production ready with $100M, there is definitely something FUBAR.
The rest looks like BS conceived by a bunch of people with a severe case of OCDS.

 

[booboo]

http://www.nasdaq.com/article/three-wheeling-elio-motors-files-for-a-100-million-ipo-cm826698

 

[Coss]

And here's the press release from EM:


August 3, 2017


Elio Motors Inc. Files Registration Statement for Proposed Public Offering

Elio Motors Seeks to Raise $100 Million

Company Intends to list on the NASDAQ Global Market

PHOENIX, August 3, 2017 – Elio Motors, Inc. (OTC QX: ELIO), a startup vehicle manufacturer planning to launch a three-wheeled vehicle, with a targeted base price of $7,450, that will get up to 84 mpg, today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed public offering of its common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Elio Motors intends to list its common stock on the NASDAQ Global Market under the ticker symbol "ELIO."

Drexel Hamilton LLC will serve as lead manager in the offering.

The proposed offering will be made only by means of a prospectus. A copy of the preliminary prospectus, when available, may be obtained from Drexel Hamilton LLC, 77 Water Street, New York, NY 10005, Attention: Eda Kouch, Telephone: 212-632-0404, Email: ekouch@drexelhamilton.com.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.


About Elio Motors

Founded by car enthusiast Paul Elio in 2009, Elio Motors Inc. represents a revolutionary approach to manufacturing an ultra-high-mileage vehicle. The three-wheel Elio is engineered to attain a highway mileage rating of up to 84 mpg, while providing the comfort of amenities such as power windows, power door lock, air conditioning and cruise control, accompanied by the safety of multiple air bags and an aerodynamic, enclosed vehicle body. Elio's first manufacturing site will be in Shreveport, Louisiana.


This press release contains forward-looking statements, including statements about the proposed offering. Actual results may differ materially from those indicated by these forward-looking statements as a result of a variety of risk factors and uncertainties discussed in documents filed by Elio Motors with the SEC. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof.

 

[Watashiwah]

Back to Earth, I just wish the ATVM loan wasn't so pivotal and such an 'Achilles heel.'

From this recent filing:


"Our application for a loan through the Advanced Technology Vehicles Manufacturing Program may not be successful.

Among the possible sources of funding is a loan through the Advanced Technology Vehicles Manufacturing, or ATVM, Program. We have applied for a loan of approximately $185 million, the proceeds of which would be used to partly fund the purchase and installation of equipment into the Shreveport facility prior to and after the start of production. As of January 15, 2015, the Department of Energy, or DOE, has confirmed that the Company has achieved the technical criteria for the loan. Since January 2015, due diligence has been pending upon the confirmation of our financial backing. While the DOE has acknowledged and seems to be sensitive to our requirements, it has not made any commitments regarding its ability to meet our funding milestones. If we fail to obtain these loan proceeds within the timeframe needed to support our proposed production timetable or not be funded at all, it is likely we will experience significant delays in our production timetable."

I am concerned that, even setting aside the fact that absolutely no performance numbers have been certified, no engine has ever been dynoed, and no vehicle has ever been physically tested, we will still be back at: EM doesn't qualify for the loan because there isn't enough money overall, and there isn't enough money overall because Elio doesn't qualify for the loan.

 

[Rob Croson]

no engine has ever been dynoed

This is not true.

 

[Donnyboy]

 

[Watashiwah]

I remember seeing that video three or four years ago, I don't remember it as being 'official' from EM nor do I remember any numbers released. Maybe someone can clear that up for me. If it's good enough to tell the DOE folks, it should be good enough for us, no? I also don't remember any of the five 'prototypes' running that engine more than 'around the block' at very slow speeds. Even then wasn't there a Geo Metro engine in there somewhere? Has Linamar done anything more with this dynoed and tested engine? Anyone know what's really going on with this?

 

[gottemfeathers]

It will not create money from thin air. To get people to buy the stock they will have to make it appealing. They would have to sell it at quite a discount from present price.

That's not necessarily true.