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Canoo Receives $45M Investment from Foreign Institutional Investor

2 min read

Canoo Inc. (NasdaqCM: GOEV) announced Monday that it has received a $45 million investment from an unnamed “foreign strategic institutional investor” that will be completed via the purchase of convertible preferred stock.

The electric vehicle-maker, with plans to move its headquarters to Bentonville, added that there is the potential to upsize the investment to $150 million.

“The closing and sale are expected to occur as promptly as practicable, subject to customary closing conditions,” Canoo said in a news release.

“The capital raised through this convertible preferred stock supports Canoo’s mission and demonstrates our disciplined, milestone driven approach to capital is aligned with the phased manufacturing capacity ramp required to satisfy our customer demand,” Canoo CEO Tony Aquila said in a statement.

The investment comes after Canoo announced last month that it had transferred its securities from the Nasdaq to the lower tier Nasdaq Capital Market exchange after falling out of compliance with the former’s listing requirements.

According to a U.S. Securities and Exchange Commission filing, Canoo fell out of compliance earlier this year with the $1 minimum bid price requirement to list on the Nasdaq. Canoo was given 180 calendar days, or until Sept. 25, to regain compliance, the filing said.

Each share of the preferred stock under the investment agreement is valued at $1,000. Dividends may be paid in cash, in kind, or in shares of common stock. Canoo will pay dividends at an annual rate of 7.5% from the original issuance date through the fifth anniversary of the closing date, Canoo said.

As part of the purchase agreement, Canoo issued to the investor “warrants to purchase 22.96 million shares of common stock,” Canoo said.

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