#355: Elio Motors Finding Success With Mini-IPO Despite Market Headwinds
Read the full Forbes article and watch the interview here: http://onforb.es/20oZ1Ls. Subscribe to this podcast on iTunes by clicking here: http://bit.ly/ymotwitunes or on Stitcher by clicking here: http://bit.ly/ymotwstitcher. Last fall, the IPO market “fizzled” and 2016 has seen the broader market fall well into “ correction” territory (representing more than a 10% drop from the peak). That hasn’t stopped Elio Motors from raising over $16 million in a “mini-IPO” with help from StartEngine. Elio Motors, founded by Paul Elio, is developing a sub-$7,000, three-wheeled vehicle that seats two people and gets 84 miles per gallon. Last summer, Elio “tested the waters” and found interest of over $27 million (a spokesman says the tally reached $45.6 million). With the SEC’s official sanction, Elio launched their regulation A offering, something of a cross between a traditional IPO and investment crowdfunding, just as the market began to stumble. Elio explains that as with a traditional IPO, the shares will trade publicly, “ Shares in Elio Motors will soon become eligible to be traded on the OTCQX, the top tier of the three marketplaces for trading over-the-counter stocks provided and operated by the OTC Markets Group. This will provide liquidity for investors who purchase stock through the Regulation A+ offering.” “Elio Motors will close out the current Regulation A+ stock offering on Feb. 1, 2016, as one of the steps needed to allow for OTCQX trading,” he adds. According to Elio, the funds will be used to fund engineering and testing vehicles, the “E-Series” to test “aerodynamics, durability and safety.” Read the full Forbes article and watch the interview here: http://onforb.es/20oZ1Ls. Please consider whether a friend or colleague might benefit from this piece and, if so, share it.