StartEngine Convertible Note Investment
How does my Convertible Note investment work?
Your convertible note investment offers you the right to receive Class A Common Stock in Eli Electric Vehicles, Inc.. To put it simply, your convertible note will convert to Eli’s Stock, and the amount of Stock you will receive in the future will be determined at the next equity round (in which the Company raises at least $500,000 in a qualified equity financing).
The highest conversion price per security is set based on a $18,000,000 Valuation Cap, or if less, then you will receive a 20.0% discount on the price the new investors are paying. You will also receive ~5.0%(or depending on your investment terms) interest per year added to your investment.
When the maturity date is reached, if the note has not converted then you are entitled to receive Class A Common Stock equal to your investment and interest back at a price per security determined by dividing the Valuation Cap by the aggregate number of outstanding equity securities of the Company as of immediately prior (on a fully diluted basis).
The conversion will happen automatically once triggered, and we will notify our investors accordingly.
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