On February 17, 2016, Elio Motors proudly announced by SEC document, that it split its ELIO stock. Owners of ELIO stock got 500 shares for every share owned. http://www.sec.gov/Archives/edgar/data/1531266/000121465916009658/p2171601u.htm<
A reward for ELIO ‘crowdfund’ stock buyers that allowed Elio Motors to remain solvent, and produce the vital Elio Prototypes? Not So Much
SEC Document Page 8 of a Balance Sheet Report, Note 2:
On July 14, 2015, the articles of incorporation were amended and the authorized common stock and preferred stock were modified to 100,000,000 and 10,000,000 shares, respectively. In connection with the amendment, the Board of Directors of the Company approved a 500 for 1 common stock split for all outstanding common stock at July 14, 2015.
All references in the financial statements to the number of shares outstanding, and per-share amounts have been restated to reflect the effect of the stock split for all periods presented.
“FRAUD!”, screamed one foolish investor, unaware of the Page 35 statement of an earlier SEC document. http://ir.eliomotors.com/all-sec-filings#document-237-0001214659-15-007920
Page 1: 2,090,000 Share sell
Page 3 :
Common stock outstanding before the offering (1) 25,077,500 shares
Common stock outstanding after the offering (1)(2)2 7,167,500 share
Page 8, 9:
Dilution: Uses 26 Million Shares as total minimum sell, and 27 Million maximum
Page 35: 26 Million becomes 100 Million, and 10 Million in Preferred Stock.
“Our authorized capital stock consists of 100,000,000 shares of common stock, no par value, and 10,000,000 shares of preferred stock, no par value. As of September 30, 2015, we had 25,077,500 shares of common stock and no shares of preferred stock outstanding.”
So, technically, it’s all legal. Quote whatever numbers you want, put one sentence on Page 35 of Very Significant extra dilution that should have been Noted LONG before page 35, and it’s all good.
This 100 million share split requires an SEC document filing, all by itself if no other filings needed, and was sandwiched in a ‘balance sheet’ on 2-17-2016. But, Elio knew it really needed to be on page 35 of its original notice, after Noting 26 Million dilution twice.
Add to that Elio Motors social media, where a little crew of ‘coincidentally’ nothing but Pro Elio comments are acceptable.
Anything else is not approved by Elio site in their comments of ‘No its NOT’, ‘you idiot’, deleted factual comments, and the banning of the factual handle from the site. Keeping any non rah-rah factual comments from being seen.
Also noted in the filing that when we bought from Startengine, we paid a fee for handling of the stock and transfer. Elio stock was purchased at $10.88 a share, with $1.12 per share going to cover handling.
As of 2-23-2016, in response to my question to Elio, ‘Is my stock ‘eligible’ for transfer yet?’ ‘What do I need to do?’
‘Yes, your Elio stock is eligible for transfer, details to follow’.
So those pesky details don’t seem to have been set up yet. There is still no system set up, after giving ‘crowdfund’ share purchase money of 1.48 million, to cover transfer share costs.
Apparently there is no time limit on when VStock, Elio’s crony, has to make the transfers. It’s been listed for 3 days, almost 6 weeks after the stock offering had closed, and there still does not seem to be any set up to transfer shares from Elio to a brokerage.
The only Elio shareholders that can sell shares are ‘crowdfund buyers’ with 1.41 million shares. But, there is still no system setup to get those shares to a brokerage. http://www.otcmarkets.com/stock/ELIO/quote
At least 93% of the companies 100 million shares are owned by 7 board of directors members. All of these shares are Restricted. There simply are NO Shares available to be sold on the OTCQX market even if now diluted to 100 million shares Elio stock holders wanted to.
As far as I’m concerned, I trust nothing from Paul Elio, or Elio Motors anymore. IMO, I have been scammed and they are fraudulent thieves.