Written by Cláudio Afonso | LinkedIn | X
Electric vehicle startup Canoo filed a preliminary proxy statement with the U.S. Securities and Exchange Commission (SEC) last Friday outlining several proposals for its upcoming 2024 Annual Meeting.
The company is seeking shareholder approval for stock issuances, changes to its agreements with Yorkville Advisors, and a potential reverse stock split.
As of the time of writing, Canoo shares are trading 5.60 percent lower at $1.01 during the pre-market trading session.
Earlier this month, Canoo said it withdrew its guidance for revenue, manufacturing run rates, as well as the production and delivery of vehicles for 2024 and subsequent periods.
Canoo is asking shareholders to approve the issuance of shares exceeding 20 percent of its outstanding stock as part of a prepaid advance agreement (PPA) with Yorkville Advisors, signed in July 2024.
The company also seeks to lower the minimum floor price for stock sales under this agreement and a 2022 PPA to $0.20 per share aiming to gain flexibility to raise capital.
The company will also ask shareholders to authorize a reverse stock split, with a proposed ratio ranging from 1:2 to 1:30, to help maintain compliance with Nasdaq listing requirements by staying above the $1 per share threshold.
In addition, Canoo plans to increase the number of shares available under its equity incentive and employee stock purchase plans by 45 million and 1 million shares, respectively.
Shareholders will vote on the election of three directors and an advisory vote on executive compensation.
As the last proposal, Deloitte & Touche LLP is proposed for ratification as the company’s independent auditor for fiscal year 2024.
The date of the annual meeting has not yet been announced.
Last week, the company said it is expanding its operations to the United Kingdom aiming to leverage local expertise while strengthening its commercial operations.
The company has selected Bicester Motion as its first location in the European Continent allowing customers to start test driving its right-hand drive commercial electric vans later this year.
Written by Cláudio Afonso | LinkedIn | X
