Written by Cláudio Afonso | LinkedIn | X
Texas-headquartered electric vehicle startup Canoo secured an additional $2.66 million in funding from YA II PN Ltd., a unit of Yorkville Advisors, a new 8k filing revealed on Tuesday.
The funding was secured under a supplemental agreement to its existing Prepaid Advance Agreement (PPA).
The second supplemental agreement, signed on Oct. 11, allows the manufacturer to receive approximately $2.5 million in net proceeds after deducting fees and a purchase price discount as shareholders wait for production and delivery updates which can guarantee the future of the startup.
The funds are part of a financing arrangement allowing the company to request advances of up to $15 million from Yorkville, with a total limit of $100 million under the agreement announced last July.
As part of the agreement, Yorkville will purchase Canoo’s shares at the lower of $1.1118 per share or 95% of the lowest daily volume-weighted average price over the five trading days prior to Yorkville providing a purchase notice.
However, the share price will not fall below $1.00, which is set as the floor price. Here’s the 8k filing Canoo filed with the SEC on Tuesday.
Canoo also issued Yorkville warrants to buy approximately 1.2 million shares at an exercise price of $1.1118 per share. These warrants become exercisable on April 11, 2025, and expire in five years, on October 11, 2029.
In addition, the filing disclosed that Canoo had reached a second consent agreement with Yorkville to continue its “at-the-market” (ATM) offering through Northland Securities, with a provision to split proceeds 50/50 between the two parties after the first $5 million in gross proceeds. The agreement remains in effect until November 22, 2024.
In late September, the company filed a preliminary proxy statement with the U.S. Securities and Exchange Commission (SEC) 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.
Canoo has recently withdrawn its guidance for revenue, manufacturing run rates, as well as the production and delivery of vehicles for 2024 and subsequent periods.
Last month, 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
