Written by Cláudio Afonso | LinkedIn | X
Electric vehicle startup Canoo announced Wednesday it issued 7,185,125 shares of its common stock to pay suppliers and vendors, the company disclosed in a new SEC filing on Wednesday.
Immediately after the release of the filing, Canoo shares dropped about 5% to $0.38, just above the record low of $0.37 reached in early November.
The 7.2 million shares were issued at $0.3992 each, totaling approximately $2.87 million. Earlier this month, Canoo had said it was negotiating with suppliers to accept shares as payment as remaining cash dropped below $1 million.
“Depending on market conditions, we may attempt to reach these agreements with as many vendors as is commercially feasible and on reasonable terms. The resulting issuances, if any, over the near term may reflect a significant percentage of our current outstanding stock, up to 19.9%, and investors are likely to experience dilution as a result,” the company said in mid-November.
The issuance was registered under Canoo’s shelf registration statement on Form S-3, which was filed on July 23, and declared effective on July 31.
“The offering of the Shares was registered pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-280962), which was filed with the Securities and Exchange Commission (the “SEC”) on July 23, 2024, and which was declared effective by the SEC on July 31, 2024,” the EV startup said in the SEC filing.
Canoo is currently seeking shareholder approval for another reverse stock split—the second this year—as it aims to regain compliance with Nasdaq’s listing requirements.
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.
Last week, the startup 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
