Written by Cláudio Afonso | LinkedIn | X
Electric vehicle startup Canoo has filed on late Friday a Form with the Securities and Exchange Commission (SEC) for the potential sale of up to 5,571,500 shares. Canoo shares closed at $1.88 per share extending one year losses to 83.65 percent.
According to the filing, the shares will be potentially sold were acquired by Capital OKC Alliance II Inc. through a securities purchase agreement dated September last year.
By then, the agreement brought the startup approximately $45 million in proceeds and could generate an additional $12.9 million if the warrants are fully exercised.
The preferred shares are convertible into common stock at a price of $12.9076 per share, and the warrants are exercisable at the same price, expiring on October 12, 2028, the filing reveals.
Earlier in the week, the chief financial officer, Greg Ethridge, participated at the Sidoti Small Cap conference where he stated the company is “at the stage of production ramp”.
The CFO said that Canoo will, “overtime”, set up “manufacturing in international locations” besides its manufacturing plant in Oklahoma, United States.
“When we thought about, for example, our capacity at Oklahoma, we were not… We can right now manufacture our multipurpose platforms, where I mentioned we have 70 percent of our critical systems, 60 percent of the BOM [bill of materials],” he stated.
Ethridge disclosed that, thanks to design, the company will be able to export the drivable platforms to other markets allowing the final assembly to be done locally.
“We can manufacture today at a much higher rate than we can in the rest of the facility. And that was by design. And the design was that we can actually manufacture those drivable platforms and export them to other markets where we can do final assembly,” the CFO said.
Without disclosing a detailed timeline, Ethridge said the company will still maintain control of the IP in the United States.
“And so we’ve been contemplating, and it’s not going to evidence itself in the immediate term, but over time, initially we’ll sell the full vehicles, but we do want to set up manufacturing in international locations. And because much of our IP is in that MPP-1, we want to maintain control of that IP in the U.S. and then ultimately be able to do some of the final assembly in other geographies. Now, depending on the geography, you might have a little… There’s different strategies around that,” he disclosed.
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The company has recently announced it had entered into a $15 million Pre-Paid Advance Agreement (PPA) with YA II PN, Ltd., managed by Yorkville Advisors.
On June 14, shares of the electric vehicle startup Canoo initially surged 14 percent, reaching $2.49 per share, before experiencing a dramatic drop of 42 percent within 21 minutes.
Volume surged to 24.35 million shares during this rapid drop, indicating heavy selling pressure as the trading volume was is currently on track to reach four times the average of the past three months.
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.
Written by Cláudio Afonso | LinkedIn | X
