Elio Motors, Inc., developer of the ultra-high-mileage three-wheel vehicle, the Elio, announced that it has formally launched the pre-sale of the ElioCoin Security Token. The company also announced that Patrick M. Byrne, Overstock’s founder and CEO, has agreed to become the first participant in the pre-sale.
The firm is aiming to raise up to $25 million in the offering. The offering will be limited to certain institutional and accredited investors in context to Regulation D of the Securities Act of 1933 (the “Securities Act”).
Elio Motors previously hit the crowdfunding scene when it became the first ever issuer to utilize the Reg A+ exemption to raise growth funding and then quickly trade on OTC Markets. The previous offering, listed on StartEngine, raised around $17 million with investments from over 6300 investors who purchased equity in the firm at $12 / share. Today, Elio trades at around $4 / share. The firm has struggled a bit to put together a vehicle that actually enter into production.
Finally, Elio has found its best hope in the form of blockchain entrepreneur and Overstock founder Patrick Byrne. He gave a lifeline to the company when he purchased $2.5 million worth of company shares. In addition, announced his intent to issue a security token – one of the first on Overstock’s tZero platform.
“I believe that the design of the ElioCoin is groundbreaking and may pave a way for new era in raising funds to pay for public infrastructure, real estate, and fund pharmaceutical research” said Byrne.
Paul Elio, CEO and founder of Elio Motors said that the firm’s recent partnerships with Dr. Byrne and other major investors has strengthened their vision to bring Elio to production.
- JonesTrading Institutional Services LLC is acting as the placement agent for the pre-sale which will continue till October 15th.
- Pre-sale offering includes sale of ElioCoin Tokens and Series E preferred equity which is convertible at $10 per share.
- After the pre-sale, Elio has plans to launch a widely marketed main sale of ElioCoin.
- Duane Morris LLP is advising Elio Motors for the matters of ElioCoin Security Token pre-sale and the private placement of Series E.
Will we finally see an Elio vehicle on road? It is quite hard to tell as of now. The investor response is quite mixed. But there is no denying that the company surely has potential. It will be interesting to see how they develop from here!