NEW YORK, Feb. 25, 2016 /PRNewswire/ -- When Elio Motors' (OTCQX: ELIO) shares began trading on the OTCQX® Best Market last week, the start-up vehicle manufacturer made history. It became the first US-based organization to raise capital using Regulation A+, and also the first to have its shares publicly traded. Nearly $17M in funding was raised on the StartEngine Crowdfunding platform, and those shares are now trading on the OTCQX market.
At a media briefing today, Elio Motors' Founder and CEO Paul Elio praised Regulation A+ as an innovative policy decision that will benefit entrepreneurs, investors and the economy.
"Regulation A+ is how Wall Street was meant to work, " Elio said. "In Wall Street's early days, entrepreneurs with a vision to create something great went to the Street to raise money, launch their companies, create jobs and build our economy. Regulation A+ gets back to these roots of connecting entrepreneurs with investors and helping launch big ideas and building things of sustained value."
In March 2015, the United States Securities and Exchange Commission (SEC) finalized rules under Title IV of the 2012 Jumpstart Our Business Startups (JOBS) Act, that paved the way for private companies to raise up to $50 million from accredited and non-accredited investors alike. This ruling is known as "Regulation A+."
Elio Motors is launching a three-wheeled vehicle that will get up to 84 MPG with a targeted base price of $6,800. The company has over 50,000 reservations for a place in line to purchase an Elio and is targeting a late 2016 production launch. The company recently raised nearly $17 million through a Regulation A+ stock offering on the StartEngine Crowdfunding platform. The funds will be used to build the company's E-Series prototypes that will be used for a variety of testing and engineering purposes.
On Feb. 19, Elio Motors' shares launched on OTCQX, a prestigious financial market for established and investor-focused U.S. and global companies operated by OTC Markets Group Inc. Having its shares traded on OTCQX will help provide liquidity for investors who purchased stock through the Regulation A+ offering.
"The JOBS Act has lifted the veil on capital raising for small companies, taking what was previously a confidential, restricted offering process held behind closed doors onto the Internet and making it available to the crowd," said R. Cromwell Coulson, President and CEO of OTC Markets Group. "We are thrilled to welcome Elio Motors, the first company to go public under Regulation A+ on our OTCQX market. Trading on OTCQX will allow Elio Motors to provide an efficient and transparent public trading market for its investors as it focuses on growing the company for the long-term."
Elio Motors' Regulation A+ initiative was powered by StartEngine Crowdfunding (www.startengine.com), the premier equity crowdfunding platform whose mission is to revolutionize the startup business model by connecting entrepreneurs, like Paul Elio, with aspiring investors.
"By allowing the public to be a part of a potentially disruptive startup, while also helping create American jobs that will boost the economy, this raise marks a new chapter in a financial revolution," said Ron Miller, CEO of StartEngine. "Elio Motors is emblematic of what equity crowdfunding can do to enable innovation and turn bold ideas into real-world products. Never before have small business owners had direct access to investors at this scale, allowing them to set the terms of their own deal without middlemen or other barriers to success."
The success of Elio Motors' stock offering is the latest in a series of important milestones for the company as it launches its low-cost, high-mileage vehicle:
- In November 2015, the company introduced the P5, its fifth generation prototype, featuring a 0.9 liter, 3-cylinder engine built by IAV specifically for Elio Motors.
- On Jan. 12, Elio Motors announced it will begin building its E-Series of prototype vehicles for testing and engineering purposes.
- On Jan. 20, the company launched its first national advertising campaign to help create additional awareness and generate more vehicle reservations.
- On Feb. 12, Elio Motors reached 50,000 reservations for a place in line to buy the vehicle.
WR Hambrecht + Co serves as Elio Motors' capital markets advisor and Designated Advisor for Disclosure (DAD), responsible for providing professional guidance on OTCQX requirements, U.S. securities laws, and corporate finance strategy.
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-wheeled 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 and air conditioning, accompanied by the safety of multiple air bags and an aerodynamic, enclosed vehicle body.
Starting MSRP excludes options, destination/delivery charge, taxes, title and registration.
Anticipated production date is based upon timely receipt of requisite funding.
About OTC Markets Group
OTC Markets Group Inc. (OTCQX: OTCM) operates Open, Transparent and Connected financial markets for 10,000 U.S. and global securities. Through our OTC Link® ATS, we directly link a diverse network of broker-dealers that provide liquidity and execution services for a wide spectrum of securities. We organize these securities into markets to inform investors of opportunities and risks: the OTCQX® Best Market; the OTCQB® Venture Market; and the Pink® Open Market. Our data-driven platform enables investors to easily trade through the broker of their choice at the best possible price and empowers a broad range of companies to improve the quality and availability of information for their investors. To learn more about how we create better informed and more efficient financial markets, visit www.otcmarkets.com.
OTC Link ATS is operated by OTC Link LLC, member FINRA/SIPC and SEC regulated ATS.
StartEngine Crowdfunding, Inc., is the premier equity crowdfunding platform, connecting Millennials and aspiring investors with tomorrow's progressive companies. Based in Los Angeles, the company was created in 2013 by Howard Marks, co-founder of Activision, and Ron Miller. StartEngine aims to revolutionize the startup business model by helping people invest in private companies on a public platform, thereby helping entrepreneurs achieve their dreams. Learn more at http://www.startengine.com
About WR Hambrecht + Co
WR Hambrecht + Co was founded in January 1998 to level the playing the field for investors and corporate clients. Like its predecessor firm, Hambrecht & Quist, WRH+Co seeks to identify high prospect growth-stage companies, and then enable access to the capital necessary to fund development, marketing and infrastructure so that these companies can achieve their full potential. WRH+Co's Regulation A+ strategy is a continuation of Bill Hambrecht's legacy of conducting small public offerings for what were once considered high-risk start-ups that are now household names and Fortune 500 companies.
Certain statements in this press release are "forward-looking statements." These statements involve risks and uncertainties, and the Company undertakes no obligation to update any forward-looking information. Risks and uncertainties that could cause cash flows to decrease or actual results to differ materially include, without limitation, consumer interest in the Company's products, general economic conditions, consumer and retail trends, costs and availability of raw materials, competition, market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company¹s control. Readers are referred to the Company¹s periodic reports filed with the SEC, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. The information contained in this press release is a statement of the Company's present intentions, beliefs or expectations and is based upon, among other things, the existing business environment, industry conditions, market conditions and prices, the economy in general and the Company's assumptions. The Company may change its intentions, beliefs or expectations at any time and without notice, based upon any changes in such factors, in its assumptions or otherwise, and it undertakes no obligation to revise or update publicly any forward-looking statements for any reason. The cautionary statements contained or referred to in this press release should be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on its behalf may issue.
SOURCE Elio Motors