Ronn Motor Group launching Reg A+ Mini-IPO to fund all-electric roadster with hydrogen fuel cell range extender
Ronn Motor Group (RMG), the developer of the Scorpion exotic sports car featuring supplementary hydrogen fuel injection to improve the performance and fuel consumption of its gasoline engine (earlier post) announced a Regulation A+ Mini-IPO that gives anyone the opportunity to invest in its company. RONN Motor Group plans to evolve the Scorpion into an all-electric roadster called the Phoenix through its equity crowdfunding effort.
The Phoenix, equipped with a hydrogen range extender intended for a total estimated range of 600 miles, will serve as the platform for RMG’s eco-daily drivers (EDDs) as well as minibuses and commercial trucks.
RONN Motor Group seeks to raise $50 million under Regulation A+ to support research, development, testing and marketing that will enable RMG to manufacture its all-electric vehicles on a worldwide scale.
Reg A+ of Title IV of the JOBS Act—signed into law by President Obama in 2012—is a type of offering which allows private growth-stage companies to raise up to $50 million from the public.
Companies looking to raise capital via Reg A+ need to file with the SEC and get approval before launching a mini-IPO. However, the fees associated with a Reg A+ offering are much lower than a traditional IPO and the ongoing disclosure requirements are much less burdensome, effectively making a Reg A+ offering a mini-IPO.
While companies raising under Reg D can only accept investments from Accredited Investors, those conducting a Reg A offering are able to accept funds from both accredited and non-accredited investors.