Written by Cláudio Afonso | LinkedIn | X
Electric vehicle maker Canoo announced on late Thursday that it has entered into a Pre-Paid Advance Agreement (PPA) with YA II PN, Ltd., which is managed by Yorkville Advisors. The agreement, effective as of this Tuesday, involves Yorkville advancing $15 million to the EV startup.
According to the form filed with the SEC, the advance 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 will receive approximately $14.1 million in net proceeds after accounting for the commitment fee and purchase price discount.
The purchase price will be adjusted based on the average daily volume-weighted average price (VWAP) of Canoo’s shares on the 60th and 120th days following the effective date, s
The issuance of common stock under the agreement is limited to 19.99% of Canoo’s outstanding shares as of June 13, 2024, unless shareholder approval is obtained for a higher amount. The advance accrues interest at an annual rate of 5%, which may increase to 15% in the event of default.
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The stock is set to join the Russell 3000 Index, according to a preliminary list of additions posted by FTSE Russell on Friday. The Index measures the performance of the 3,000 largest publicly traded companies in the U.S. by market capitalization.
The annual Russell US Indexes reconstitution ranks the largest U.S. stocks by market capitalization as of the last day of April.
Last month, Roth Capital/MKM analyst Craig Irwin lowered the price target on Canoo shares from $4.00 to $3.00, maintaining a Neutral rating. This adjustment followed the EV startup’s earnings results reported earlier.
Canoo announced in early April a partnership with Red Sea Global to conduct trials on three models, namely Canoo‘s Lifestyle Vehicle (LV), Lifestyle Delivery Vehicle (LDV) 190, and the Bulldog pickup truck.
These trials aim to facilitate transportation of visitors between Saudi Arabia’s international airport, resorts, and excursions — the company said in a statement.
In April, the company inked a deal with Jazeera Paints for a electric vehicle deal in Saudi Arabia. Jazeera Paints will initially purchase 20 EVs (LDV 130 and LDV 190 ), with the potential for 160 more, marking the entrance of Canoo into the $30 billion Saudi EV market.
Written by Cláudio Afonso | LinkedIn | X
