Written by Cláudio Afonso | LinkedIn | X
Canoo, the electric vehicle startup, announced late Wednesday an offering of up to 13,719,850 shares of its common stock. The shares closed the after-market session 6 percent lower following the news.
The company continues to seek funding as its pilot programs with potential clients are ongoing, as confirmed by the CFO on Wednesday.
The offering is part of an agreement with YA II PN, Ltd., a Cayman Islands limited partnership managed by Yorkville Advisors Global, LP, according to a filing with the U.S. Securities and Exchange Commission (SEC).
This marks the second offering after the company filed a prospectus for the sale of up to 5.57 million shares earlier this week in agreement wit Capital OKC Alliance II Inc., As reported by EV, Canoo had recently disclosed the potential sale of the shares. The shares will be issued under a securities purchase agreement dated September 29, 2023.
Last month, on June 14, Canoo entered into a Pre-Paid Advance Agreement (PPA) with YA II PN, Ltd. Under this agreement, Yorkville advanced $15 million to Canoo, which will be offset by the issuance of Canoo’s common stock to Yorkville at an initial purchase price of $2.30 per share.
The company expects to receive approximately $14.1 million in net proceeds after deducting the commitment fee and purchase price discount
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The initial purchase price for the shares is set at $0.20 per share, but this will be recalculated based on the volume-weighted average price (VWAP) of Canoo’s common stock on the NASDAQ for specific periods after the effective date.
These recalculations are scheduled for the 60th and 120th days post the effective date. YA has the option to purchase the shares at its discretion, the company clarified.
On Wednesday, two company executives participated in a webinar hosted by investment firm Force Family Office.
Greg Ethridge, the company’s CFO, and William Vetter, Canoo’s Director for Product Management & Government Sales presented the company and answered a handful of question from the participants.
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When asked about the capital structure of the stock, the CFO Ethridge admitted that the stock “hasn’t performed well”.
Earlier in the webinar, the CFO cited Elon Musk to highlight the long term view that shareholders should have. During the event, both Ethridge and Vetter enhanced the lack of competition for light cargo vans like the ones from the US-based startup.
Additionally, Canoo reported significant stock awards granted to three top executives, as detailed in SEC Form 4 filings released last Friday.
The recipients include CFO Greg Ethridge, Senior VP and Chief Accounting Officer Ramesh Murthy, and General Counsel and Corporate Secretary Hector Ruiz.
In a strategic move last week, the company announced an agreement with logistics company Go2 Delivery for the purchase of five commercial delivery vans, with an option to acquire up to an additional 85 vans. This deal underscores Canoo’s growing footprint in the commercial EV market.
Written by Cláudio Afonso | LinkedIn | X
