Canoo Announces 1-for-20 Reverse Stock Split and Other Corporate Updates

On December 18, 2024, Canoo Inc. (NASDAQ: GOEV) filed a Form 8-K with the Securities and Exchange Commission, announcing significant corporate developments. The company has undertaken a 1-for-20 reverse stock split of its common stock, par value $0.0001 per share. The reverse stock split is effective as of December 24, 2024, at 8:00 a.m. Eastern Time. For every 20 shares of common stock held, they will automatically be combined into one share. Cash payments will be made to shareholders in lieu of any fractional shares resulting from the reverse stock split.

Following the split, Canoo’s common stock is expected to trade on The Nasdaq Capital Market under the symbol “GOEV” with a new CUSIP number (13803R300). Additionally, the publicly traded warrants under the symbol “GOEVW” will continue to be listed on the same exchange. However, the number of shares of common stock that may be purchased upon the exercise of each warrant will be adjusted proportionately in line with the reverse stock split.

Furthermore, the company has amended its collateral package associated with the Secured WC Facility agreement with AFV Management Advisors, LLC, to include assets at Canoo’s Pryor, Oklahoma location. This change follows an advance of $2.5 million under the Secured WC Facility.

In other news, Canoo announced the temporary idling of its Oklahoma City and Pryor manufacturing facilities in Oklahoma, resulting in the furlough of 87 employees for a twelve-week period. An additional 13 employees across other locations will also be furloughed. These actions are part of the company’s ongoing efforts to reduce costs, conserve cash resources, and focus on core operations and capital raising.

Canoo also highlighted its capital-intensive nature, mentioning the need for additional funds to sustain operations through 2024. While the company is actively pursuing additional financing, potential funding challenges or ongoing furloughs could have adverse effects on operations, liquidity, and financial stability.

The Form 8-K filing includes forward-looking statements cautioning investors that actual results could differ from the provided outlook. Canoo commits to providing any necessary updates regarding these statements.

The full details of these announcements, including the Certificate of Amendment, are available in the Form 8-K filing on the Securities and Exchange Commission’s website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Canoo’s 8K filing here.

Canoo Company Profile

Canoo Inc, a mobility technology company, designs, develops, markets, and manufactures electric vehicles for consumer, commercial fleet, government, and military customers in the United States. the company utilizes its multi-purpose platform architecture, a self-contained, fully functional rolling chassis that directly houses the critical components for operation of an electric vehicle, including its in-house designed proprietary electric drivetrain, battery systems, advanced vehicle control electronics and software, and other critical components.