Tuesday, April 24, 2018

Overstock.com Invests $2.5M In Elio Motors

Salt Lake City-based e-commerce retailer Overstock.com and Phoenix, Arizona-based vehicle manufacturer Elio Motors said this morning that Overstock.com will buy $2.5M in shares of newly issued Elio common stock, in a private placement. The two said Overstock will pay $2.75 per share in the private placement in Elio Motors, which is traded OTC QB as ELIO. Elio said it will use the investment to capital expenditures and repay certain outstanding debt and accounts payable. Elio is developing a three wheeled, ultra high mileage vehicle. In conjunction with the deal, Elio said it is launching its own "token offering" based on Blockchain. The companies said they hope to trade the new token, ElioCoin on Overstock.com's tZERO platform. Overstock.com has been a big proponent of Blockchain, the underlying technology behind cryptocurrency like Bitcoin. Elio's use of a three wheeled vehicle allows the company to avoid some of the complexity and regulations that govern four wheel automobiles; however, the company said its vehicle will still include such amenities as power windows, power door lock air conditioning and cruise control, plus multiple air bags.