Confederate Aims at Tripling their Bike Production with $1 Mil Private Stock Offering

Confederate Motors is once again making a stock offer, but this time the investors get an even nicer bonus. The luxury motorcycle manufacturer is offering shares at discount prices, ready to sell a private stock with a price-per-share that is 20 percent lower than the stock price (CFED).
Confederate P51 Combat Fighter G2 1 photo
Photo: Confederate Motors
Last time when Confederate made a similar offer was in late December 2014, when 8 million shares were divided in 80 units, sold in four rounds in various batches, looking for around $5 million in funds for the entire sale.

Now Confederate releases their first-ever 506(c) offering, addressing accredited investors. The particularities of the 506(c) offering will only allow accredited investors to buy Confederate shares, so this offer is not exactly for all the motorcycle enthusiasts.

The price of the shares in the offering was dropped from $0.25 to $0.20 to make the deal more attractive

According to Confederate, this is what accredited investor means: “A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, or has assets under management of $1 million or above, excluding the value of their primary residence.”

The same goes for “a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.”

With the money for the five million shares, Confederate Motors plans to upgrade three areas: production, research and development, and marketing. However, the key element seems to be faster production.

Confederate has been producing one motorcycle per week, on average, historically. The maker estimates that the production could be doubled or even tripled, so that the estimated target revenue of $60 million annually could be reached. If Confederate's plan works out, we might be looking for share prices growing to as much as $5 and beyond, the same sources report.

The newest addition to the Confederate family is the P51 Combat Fighter G2 (second generation), of which only 61 units will be manufactured, selling for $113,900 (€100,900, the 30 white ones) or $119,500 (€105,900, the 31 black ones).
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