Written by Cláudio Afonso | LinkedIn | X
Electric vehicle startup Canoo has raised $1.12 million through a promissory note issued by AFV Management Advisors, LLC, an entity affiliated with Canoo’s CEO, Tony Aquila, according to a new SEC filing.
The initial loan, created on October 18, 2024, provided $850,000 to the EV maker at an annual interest rate of 11%, followed by an additional $270,000 advance on October 21, bringing the total to $1.12 million.
Canoo became part of AFV’s investments in July 2020 when Aquila initially agreed to provide rescue capital to the company.
The one-year note, set to mature on October 18, 2025, allows Canoo to request further advances at mutually agreed amounts. Interest payments are due monthly, with principal and unpaid interest repayable at maturity.
Additionally, Canoo and AFV are also discussing a potential secured revolving credit facility, which would replace the current note if finalized. No terms for the credit facility have been set, and there is no guarantee the facility will be established.
The note contains standard default provisions, enabling AFV to demand repayment if Canoo defaults. The transaction was approved by Canoo’s independent directors due to its related-party nature.
AFV Partners was founded in 2019 by Tony Aquila and is “a long-term sustainable capital vehicle that invests globally in assets that contribute to a net positive impact on the environment,” according to the official website.
Here’s the 8-k form filed by Canoo on Thursday.
Earlier this week, the company said it received Individual Vehicle Approval (IVA) regulatory certification in the UK, confirming that its right-hand drive electric commercial vans meet the national technical requirements.
Last month, Canoo’s CFO Greg Ethridge revealed in a webinar that the company expects “to have vehicles” in the UK and “pilot with them by the end of the year”.
Canoo has recently withdrawn its guidance for revenue, manufacturing run rates, as well as the production and delivery of vehicles for 2024 and subsequent periods.
Written by Cláudio Afonso | LinkedIn | X
