Phoenix, Arizona - Elio Motors today announced it has retained Network1 Financial Securities, Inc., as the lead placement agent for the Company's offering of up to $30,000,000 of Convertible Subordinated Debt to accredited investors under Rule 506 (c) of Regulation D of the Securities Act. Elio Motors is targeting the first half of 2016 to launch an enclosed three-wheel vehicle that is expected to sell for $6,800 and get up to 84 MPG.
The company announced last month that it is launching an opportunity for accredited investors to buy into the company. It is one of several funding strategies Elio Motors has adopted to help the company reach the production phase.
The investment opportunity has been made possible by the 2012 JumpStart Our Business Start-up (JOBS) legislation that amended the Securities Act of 1933 and Sarbanes-Oxley (SOx) requirements for generally soliciting investors. The JOBS Act makes it possible for suitable, accredited investors with $1 million in assets (excluding their primary residence) or with an income for the past two years of at least $200,000 for an individual and $300,000 for a family to invest in Elio Motors for a minimum of $15,000.
“The 2012 JOBS legislation is one of the best things to happen for accredited investors, start-ups and entrepreneurs in a long time,” said Paul Elio, founder and CEO of Elio Motors. “How often in business history would you read about an upcoming IPO, only to find out it was nearly impossible for an individual to get in on the ground floor? The 2012 JOBS legislation provides access to exciting investment opportunities for a much wider swath of the population. We know a lot of people are excited about Elio Motors and this gives them a chance to own a part of something truly revolutionary.”
“Network 1 is proud to be selected by Elio Motors to assist in their capital raising needs. We are excited to help them achieve their goal of manufacturing a high mileage, inexpensive, quality American-made form of personal transportation with a unique business model.” said Mike Zarraga, Senior Vice President of Business Development for Network1. “Network1 looks forward to working with Elio Motors to bring this investment opportunity to its many supporters and our clients.”
Anyone interested in learning about the opportunity can go to the Elio Motors website and click on the “Investor Inquiries” tab. The Certificate of Accredited Investor and Non-Disclosure Agreement will need to be downloaded and completed to begin the eligibility process. Once eligibility is verified, the Private Placement Memorandum (PPM) will be provided for investment consideration.
The Elio will be on display at the Palm Beach Barrett-Jackson Collector Car Auction next week. The company recently unveiled its new 0.9 liter, 3-cylinder engine prototype and will manufacture the vehicle in Shreveport, Louisiana, at a former General Motors facility that made vehicles such as the Hummer H3 and Chevy Colorado. The low-cost, high mileage vehicle is already a hit with consumers. Elio Motors has taken more than 41,000+ reservations for a spot in line.
When the Elio goes to market, it is projected to create 1,500 jobs at the facility. In addition, the Elio will use 90 percent North American content, creating another estimated 1,500 jobs at its supplier partner companies. These manufacturing jobs will in turn create approximately 18,000 indirect jobs across the country.
About Elio Motors
Founded by car enthusiast Paul Elio in 2008, 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. Elio’s first manufacturing site will be in Shreveport, La. For more information, visit www.eliomotors.com or www.facebook.com/ElioMotors.
About Network1 Financial Securities
Network 1 Financial Securities, Inc. is a full service broker dealer and a Financial Industry Regulatory Authority (FINRA) member firm that offers a wide array of investment banking services. The company’s investment banking team has extensive experience and has helped raised capital for small and large companies. Founded in 1983, it is headquartered in Red Bank, New Jersey.