Written by Cláudio Afonso | LinkedIn | X
Shares of Canoo hit a new record low on Thursday at $0.35 as the company seeks approval for the second reverse stock split in less than a year. As of November 6, the company had $700,000 in cash and cash equivalents, enough for about a month based on its most recent cash burn rate.
The stock dipped further this week following the postponement of the annual meeting of shareholders due to a lack of sufficient votes to pass the proposals, which includes the reverse stock split. If approved, it will help Canoo shares meet Nasdaq’s minimum listing requirement of trading at or above $1 per share.
Canoo said last week 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 company disclosed in a new SEC filing on Wednesday that it issued 7,185,125 shares of its common stock raising about $2.87 million to pay suppliers and vendors as its cash reserves approach $0.
The startup has recently reported its third quarter financial results where it disclosed that cash and cash equivalents stood at $1.5 million as of September 30. Over the first five weeks of this quarter, the Texas-headquartered firm disclosed in a SEC filing its cash reserves dropped from $1.5 million to $700,000 as of November 6.
Canoo has recently announced it entered into a $12 million secured revolving credit facility with AFV Management Advisors, LLC, an entity founded by the company’s CEO, Tony Aquila.
Written by Cláudio Afonso | LinkedIn | X
