Elio Motors may yet build 84-mpg three-wheelers at the old GM plant in Shreveport. (Hey, it could happen.) Another believer has declared himself:
Online retailer Overstock.com announced that it’s buying $2.5 million of newly issued shares of Elio’s common stock. (Elio shares are traded on the OTC market.) The money will, in part, help pay off Elio Motors’ “outstanding debt and accounts payable.”
[Overstock.com] Founder and CEO Patrick Byrne said he “was in awe” after just five minutes in the car. “I am confident that this will become my car for at least two-thirds of the days I drive,” he said. Byrne also said he believes in Elio Motors’ vision, calling the vehicle “a win for America.”
It helps that Byrne’s firm is both established and profitable. It perhaps does not help that Byrne is known to be a fan of cryptocurrency, which may or may not have influenced this bit of news:
Elio Motors also announced today that it will launch a token-based offering called ElloCoin in order to fund production, which it still plans to get rolling in 2019. Instead of an initial coin offering, or “ICO,” the company will launch a “security token offering” facilitated by JonesTrading, with the tokens only initially available to “accredited investors.”
You would be justified, I think, in asking “WTF is an STO?”
[S]ecurity token offerings will do more than simply provide a legal path for companies seeking to offer new cryptocurrencies. A security token can be linked to virtually any type of investment, such as stocks or commodities.
One of the primary STO platforms, Polymath, estimates that security tokens will soon outdistance the now-dominant “utility tokens” like Bitcoin. Polymath sees security tokens exploding to a value of $2 trillion in 2018 alone and $10 trillion by 2020.
I swear, people think blockchain can cure anything from low market capitalization to the heartbreak of psoriasis.
Speaking of market caps, Elio’s is about $75 million, or about half the company’s accumulated deficit, though price per share has risen from a rock-bottom $2 to around three and a quarter.