Written by Cláudio Afonso | LinkedIn | X
The electric vehicle (EV) startup Canoo announced Monday it has entered into a Prepaid Advance Agreement with the investment firm YA II PN. The stock closed down 2.54% on Friday at $2.30 per share, marking a 42% increase from its recent lows in late June.
According to the SEC filing, the agreement has been effective since last Friday, July 19, and allows Canoo to request advances up to $100 million over the next 24 months. The initial advance of $15 million will be offset by the issuance of shares priced at $2.70 each.
The net proceeds of the initial advance are approximately $14.1 million after fees, according to the EV maker.
Additionally, Canoo has issued warrants to Yorkville to purchase approximately 2.7 million shares at $2.70 per share, exercisable beginning January 19, 2025, and expiring on July 19, 2029.
In early 2024, Canoo applied for EPA certification for both its lifestyle delivery vehicles (LDV) 130 and 190 with projected sales “to total roughly 100 LDV 130 units and 100 LDV 190 units in total”.
However, on the same day of January, Canoo‘s CFO Greg Ethridge participated in a webinar at the Sidoti Microcap Conference where he mentioned that the EV startup was expecting to deliver between three thousand and five thousand vehicles in total.
Contacted by EV, a Canoo spokesperson said the company “produced 22 and delivered 9” vehicles as of the last earnings call adding that the EV maker also “delivered all 6 USPS vehicles” until then.
When asked about an update on the 2024 annual delivery target of 200 units and any change on this target, the company declined to comment pointing out the upcoming earnings call.
Last month, the CFO said the company is “at the stage of production ramp”. Ethridge said that Canoo will, “overtime”, set up “manufacturing in international locations” besides its manufacturing plant in Oklahoma, United States.
Year to date, the stock registered a loss of about 55 percent, according to data from MarketWatch.
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Last week, Canoo announced that it issued substantial stock grants to seven members of its Board of Directors as part of the company’s 2020 Equity Incentive Plan, according to SEC Form 4 filings.
The company’s Board of Directors, including the Lead Independent Director and six other Directors reported the acquisition of 92,765 restricted stock units (RSUs) each.
These RSUs were granted as part of Canoo’s annual equity awards to its directors and will fully vest on either July 15, 2025 or the company’s 2025 annual meeting, as long as the directors remain in service.
The reported amounts also reflect adjustments from the company’s 1-for-23 reverse stock split, executed in early March.
Earlier this month, Canoo also granted stock awards to three top executives as part of its equity incentive program. Chief Financial Officer Greg Ethridge was awarded 126,500 shares, while Hector Ruiz and Ramesh Murthy, Senior Vice President and Chief Accounting Officer, received 180,000 shares each.
Written by Cláudio Afonso | LinkedIn | X
