EV startup Canoo has been in the news as of late. The California-based company is heading to Oklahoma to build some of its electric vehicles (EVs). It recently announced the issuing of stock to an investor to raise funds and the stock price has already gone up in response in early trading.
Canoo has chosen Oklahoma City to be the location of their new manufacturing facility due to the hard-working and dependable labor force. The CEO of the company, Tony Aquila, has noted this in a recent statement. In addition, the company also updated their current prospectus and has detailed plans to sell 34 million shares of common stock.
The stock price of Canoo, trading under the ticker GOEV, rose 4.1% in premarket trading, reaching 54 cents a share. Although these numbers look promising, the company still has some ways to go compared to the all-time high of nearly 25 dollars a share of December 2020.
Canoo projects their financials for 2022 and 2023 to be around 329 million dollars and 840 million respectively. However, as of March, they have yet to generate significant revenue and have dwindling cash balances at less than 40 million dollars. The stock sale could generate around 17 million dollars but this is still not enough for the amount of cash necessary to get the ball rolling.
Canoo is owned by an investor group led by Yorkville Advisors and CEO Tony Aquila. Aqulia is an entrepreneur with experience in automotive technology and microelectronics. His career highlights include, having founded and sold multiple companies, as well as being an incumbent chairman of two NASDAQ-listed companies.
With the stock sale, EV manufacturing facility, and experienced leadership, the future looks optimistic for Canoo. All the same, the company must increase cash balances and revenue in order to reach their financial goals and make their mark in the EV industry.