Many listeners ask me about Elio Motors, and there just hasn’t been anything new. In fact, this is the first info the company has put out in a year
, Inc. and Elio Motors jointly announced Overstock’s strategic purchase of common stock in Elio, pursuant to which Overstock has agreed to buy $2,500,000 of newly issued shares of Elio common stock at $2.75 per share in a private placement. Elio intends to use the proceeds of the new investment to fund capital expenditures and repay certain outstanding debt and accounts payable.
The shares have not been registered under the Securities Act of 1933. Accordingly, the shares may not be offered or sold in the U.S. except pursuant to an effective registration statement or an applicable exemption from the registration requirements under that Act. In connection with the private placement, Elio will enter into a registration rights agreement with Overstock.
Concurrent with the strategic purchase, Elio board members Stu Lichter and Ken Way have agreed to convert all of the convertible debt of Elio that they collectively hold into common stock of Elio at the conversion price of $2.75 per share. As of the date of this press release, the aggregate outstanding principal amount of the convertible debt is equal to approximately $1,700,000.
“I believe Elio’s vision and business model to build a $7,500 ultra-high mileage, ultra-fuel-efficient car-like vehicle is a win for America,” said Overstock CEO and founder, Patrick M. Byrne. “An Elio that was brought to Manhattan drew a crowd just parked against the curb. I sat in it for five minutes and was in awe. It is really comfortable and feels like great fun. I am confident that this will become my car for at least two-thirds of the days I drive. Given its breakthrough pricing and ultra-low delivery cost, I anticipate that Overstock Cars and even Overstock Retail will play a role in bringing this product to the public.”Photo Credit: Elio Motors