Written by Cláudio Afonso | LinkedIn | X
EV struggling startup Canoo said on Friday it announced it had adjourned its Annual Meeting of Stockholders to provide shareholders additional time to vote on all proposals. The company said in a statement it did not have enough shares represented, either remotely or by proxy, to meet the quorum required to proceed with the meeting.
At the meeting, Canoo is seeking approval on several measures, including its second reverse stock split of the year. Shares of the EV startup lost the 2% gain achieved in the first minutes of Friday’s session, with the stock now trading 0.5% lower at $0.445.
The company said its Board of Directors “continues to believe that all of the proposals contained in the proxy statement are advisable and in the best interests of the Company’s stockholders to consider and act upon.”
The meeting was rescheduled this Friday to December 6 at 8:30 AM central time and shareholders can vote their shares until December 5.
In late September, Canoo has proposed a reverse stock split with a ratio ranging from 1:2 to 1:30 to help maintain its Nasdaq listing. The company is also seeking to increase the number of shares available under its equity incentive plan by 45 million and under its employee stock purchase plan by 1 million shares.
If approved, the reverse split will allow Canoo to regain compliance with Nasdaq’s $1 per share minimum listing requirement. The company is also asking for authorization to issue shares exceeding 20% of its outstanding stock under a prepaid advance agreement with Yorkville Advisors, signed in July 2024.
Canoo reported earlier this month a $0.8 million decline in its cash and cash equivalents during the first five weeks of the quarter, leaving it with less than that amount on hand and raising serious financial concerns.
Additionally, the Texas-headquartered startup aims to lower the minimum floor price for stock sales under this agreement, as well as a separate 2022 agreement, to $0.20 per share to increase its flexibility in raising capital.
In addition to these financial measures, shareholders will vote on the election of three directors and an advisory resolution on executive compensation.
The company announced earlier this week that it is partnering with Northside, a provider of automotive service, maintenance, and repair, as part of its expansion into the United Kingdom.
As recently reported by EV, Royal Mail, the UK’s largest electric fleet operator, has started piloting electric delivery vehicles from the Texas-based EV startup.
Written by Cláudio Afonso | LinkedIn | X
