By Jonathan B. Wilson partner in the Atlanta business law firm of Taylor English CrowdFundBeat Sr. Guest Editor,
Elio Motors (OTCQX: OTCM), one of the first companies to use the expanded offering potential in Regulation A+, has listed its securities for resale on the OTC QX market.
“We are proud to welcome Elio Motors, the first company to raise capital online and go public on OTCQX under the JOBS Act Regulation A+,” said Jason Paltrowitz, Executive Vice President of Corporate Services at OTC Markets Group. “OTC Markets Group welcomes innovators and entrepreneurs and is proud to offer the market of choice for the new generation of crowdfunded capital raisings. We look forward to seeing Elio Motors grow its business and its visibility with investors.”
Paul Elio, founder and CEO of Elio Motors said, “OTC Markets Group provides a valuable service to organizations and investors and is truly an important engine in the American economy. We look forward to having our stock trade here as we continue to build a great American success story.”
Unlike the NASDAQ and NYSE markets, each issuer on the OTC market must have a Designated Advisor for Disclosure, which may be either an investment bank, a law firm or an accounting firm that has been certified by OTC Markets.
Founded by car enthusiast Paul Elio in 2009, Elio Motors claims to have a revolutionary approach to manufacturing an ultra-high-mileage vehicle. The three-wheeled Elio is engineered to have 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 vehicles are not yet widely available as much of the proceeds of its offering are intended to finance the preparation of a production line in the United States. As a result, Elio Motors had not material revenues and only losses to disclose in its historical financials. It was able to use the power of social media to attract investors to its Regulation A+ offering. The company has used the OTC market listing to provide a means for those investors to get liquidity for their investments.