Canoo’s Chief Accountig Officer acquires over 175k shares in a difficult time for the EV startup

Written by Cláudio Afonso | | LinkedIn | Twitter

According to a SEC form filed on Thursday, Canoo‘s Chief Accountig Officer Ramesh Murthy acquired 175,351 Restricted Stock Units (RSUs). Each RSU represents a right to receive one share of the Issuer’s common stock upon vesting, the form clarifies. Murthy owns now a total of 281,919 shares, valued at $992,355 based on the last closing price of $3.52.

The EV startup is doubtful about its future after losing $125.4 million during the first quarter of the year, compared to a loss of $15.2 million in the same period of 2021.

“As of the date of this announcement, we are reporting that there is substantial doubt about the Company’s ability to continue as a going concern,” the company states in its Q1 report.

Recently, the electric vehicle start up Canoo filed for up to 48,043,111 shares offering by selling stockholders expecting to receive up to $250 million in aggregate gross proceeds.

“We are not selling any securities under this prospectus and will not receive any of the proceeds from the sale of our common stock by the Selling Stockholder. However, we may receive up to $250.0 million in aggregate gross proceeds from sales of our common stock to YA that we may make under the Purchase Agreement, from time to time after the date of this prospectus”, the company said.

On May 10, Canoo reported its Q1 2022 financial results announcing $600 million in accessible capital to optimize the company’s financial needs to start of production. A total of $300 million in total funding via a committed PIPE from an existing shareholder and an equity purchase agreement with financing partner Yorkville Advisors and $300 million universal shelf.

The company disclosed having more than 17,500 preorders with a projected value of $750 million and a growing pipeline.

Written by Cláudio Afonso | | LinkedIn | Twitter