The SEC has qualified the Regulation A+ offering of Elio Motors which plans to make small cars costing about $7,000.  Elio plans a maximum offering size of $25 million.  The offering is being made through the facilities of StartEngine, which appears to be a slick new Regulation A+ platform.

The minimum purchase is 50 shares for $600.

How much does one of these cost to do?  The SEC filings disclose the following:

• Legal fees:       $110,000
• Audit fees:      $25,000
• StartEngine:    $20 per investor in cash plus warrants
• Specified broker-dealer administrative services:
  • $2.00 per domestic investor for the anti-money laundering check and bad actor checks
  • A fee equal to 1.0% of the gross proceeds from the sale of the shares offered
  • $225 for escrow account set up and a monthly administration fee of $25 per month
  • Up to $15.00 per investor (depending on whether subscription is by ACH or wire) for processing incoming funds, and $15.00 per wire for outbound funds to Elio upon the closing of the offering
  • A technology service fee of $2.00 for each subscription agreement executed via electronic signature
  • Itemized fees are capped at $399,690 for the minimum subscription amount required to close and up to $953,790 for the maximum amount including oversubscription

See our previous analysis of Regulation A+ offerings that have been qualified here.