Written by Cláudio Afonso | LinkedIn | X
Electric vehicle startup Canoo announced on Monday the receipt of the first of two tranches of advanced manufacturing assets from Arrival Automotive UK Limited. The British EV startup, has gone into bankruptcy protection without making any sales earlier this year.
Last 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.
These assets have been delivered to Canoo’s Foreign Trade Zone (FTZ) designated facility in Oklahoma City, Oklahoma, and are set to significantly enhance the company’s production capabilities.
The initial delivery comprised 44 containers containing 226 lots of advanced manufacturing assets including robots and a comprehensive production infrastructure, according to Canoo.
The startup said it expects these additions to streamline its in-house production processes, leading to reduced lead times, enhanced scalability, lower capital expenditures, and ultimately, reduced unit costs.
Last Friday, the company filed 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.
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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
