Motorcycle startup Confederate Motors is planning to raise $1 million through a private stock offering with the hopes of securing enough funding to increase the production of its motorcycles. It’s the first aggressive step initiated by Confederate Motors to increase exposure for its two motorcycles, the X132 Hellcat Speedster and the P51 Combat Fighter.
According to the company, a total of five million shares of the company’s stock will be made available for purchase with each stock unit priced a just $.20. There is a caveat, though. The offering will be made under the Securites and Exchange Commission’s Rule 506 of Regulation D, which stipulates that purchasing a stock in the company isn’t as easy as it looks. For an individual or a company to be eligible in purchasing the available shares, they must be considered as accredited investors by the SEC. That means that an interested party must be someone who has the finances to do it or is an actual financial institution.
Confederate Motors has given no timetable on when it plans to make its five million shares available for purchase, opting only to say that it plans to use the proceeds to increase the production of its models to two per day. That might not seem like a big deal, but for a boutique brand like Confederate Motors, it’s the next step towards establishing itself as a player in the niche motorcycle segment.
Continue reading to learn more about Confederate Motors’ plan to raise $1 million through a private stock offering.
Although dedicated to cars, the New York Auto Show was the proper environment in which Confederate Motor Company to exhibit three of their most recent creations that are also know as the indestructible bikes from Terminator 4. Named Fighter, Hellcat and Wraith, these bikes do look like complicated pieces of engineering, but not quite like having minds of their own or being that hard to destroy. And if it is to take in consideration the Company’s fame for providing pretty unreliable bikes, I say stick to the movie.