Written by Cláudio Afonso | LinkedIn | X
Canoo, which defines itself as a technology equipment manufacturer (TEM), participated on Wednesday in a webinar hosted by investment firm Force Family Office, where two executives provided some business updates.
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.
When asked about the capital structure of the stock, the CFO Ethridge admitted that the stock “hasn’t performed well”.
“In this rising rate environment that we’ve lived in, many earlier stage companies that come under fire, and obviously small caps got hurt pretty bad,” he stated.
“We think our stock has not performed well, but has provided… continues to provide access for capital for the company. So that’s been important, and it’s something we’re constantly balancing and looking for other forms of capital,” Ethridge added.
NEVER MISS AN UPDATE
Earlier in the webinar, the CFO cited Elon Musk to highlight the long term view that shareholders should have.
“Elon Musk — recently on the Tesla [earnings conference] call — made a comment something like… if you’re buying the stock just to see units quarter to quarter, you’re buying it for the wrong reason. You need to be buying at the back of the IP, the team, the future ecosystem, and where mobility is moving […] to me, I think, resonates right?,” he said.
“It’s because they, if you’re trying to measure any party just kind of quarter to quarter. That’s not necessarily the right way to do it. Look at it holistically. Think about where is that company playing. In our case, again, around commercial fleet and government around consumer, right? Where is the biggest piece of the pie on the gross margin piece? We believe it’s strongly in the government and commercial side of the business, other than consumer.
During the event, both Ethridge and Vetter enhanced the lack of competition for light cargo vans like the ones from the US-based startup.
“And in our instance, with the light cargo vans, there’s not a lot of competition… any competition right now. We’re and we want to continue to, kind of, keep the lead in that category,” the CFO concluded.
NEVER MISS AN UPDATE
On Tuesday, after the closing bell, the company filed a prospectus for the offer and sale of up to 5,571,500 shares of its common stock.
This follows an agreement with Capital OKC Alliance II Inc., which includes the potential issuance of shares pursuant to warrants and preferred stock conversion, according to the EV maker.
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.
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
