Shares of the electric vehicle startup Canoo reached a new all-time low at $0.74 on Thursday as the timeline for mass production remains unclear.
Additionally, Canoo withdrew in mid-September its revenue and operational guidance for this year while also retracting its forecasts on production run rates, vehicle manufacturing, and deliveries for 2024 and beyond. Since then, the stock dipped another 38%.
A stock that closes below $1 for thirty consecutive trading days risks delisting from the exchange. However, listed companies are generally granted a 180-day period to regain compliance, during which they must achieve a closing price of at least $1 for ten consecutive trading days.
Canoo shares closed below $1 on October 21 and are now 25% below Nasdaq’s threshold. Four weeks ago, 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.
In March, the company executed a 1-for-23 reverse stock split to regain compliance.
In the second quarter, the EV maker reported a record revenue of $605,000, an adjusted EBITDA loss of $38.6 million, and an adjusted net loss of 61 cents per share.
“This quarter represented good progress with US and international customers completing pilots and testing. We are focused on left-hand drive and right-hand drive large fleet customers and finalizing their configurations,” CEO Tony Aquila said in August amid the Q2 Earnings release.
In the second quarter, the company decreased its operating expenses by 33%, or $20.7 million, compared to the first three months of the year.
In late September, the company said it was expanding its operations to the United Kingdom with plans to start vehicle pilots by the year end.
The company is now working on the registration for both its Lifestyle delivery van (LDV) models with the UK’s Driver and Vehicle Licensing Agency (DVLA), allowing them to be legally driven on UK roads.
