Tech

Electric vehicle maker Canoo is in danger of shutting down


Electric vehicle manufacturer warned investors that it was about to run out of funds as it was working to bring its products to market. It said that, due to the timing of the funding being announced and a number of other factors, it had “substantially cast doubt on the company’s ability to continue operating as a routine concern.”

“We have been clear on our philosophy of prudent fundraising and will continue with this disciplined approach,” said CEO Tony Aquila. . “We have over $600 million in reachable capital to support Start of Production (SOP.) As an operator and investor, we have substantial experience in raising capital in capital markets. Challenging markets – and the best way to raise capital is to reach your goals.We will continue to advance as needed, pass milestones and in a position to take advantage of improving market conditions. We are focused on creating long-term value for our customers and shareholders.”

Canoo reported a net loss of $125.4 million in its first-quarter earnings (compared to $15.2 million in Q1 2021). It burned through $120.3 million in the first three months of the year, up from $53.9 million a year earlier. That leaves it with cash and cash equivalents of $104.9 million at the end of March.

The company expects operating expenses of $95 million to $115 million for the quarter, as well as $85 million to $105 million in capital expenditures. As it stands, Canoo generates no revenue.

Electric vehicle maker says it has built as of the end of March, with 17 of them currently on the way. Based on , company leaders said in an earnings call that it only produces 12 vehicles per week and is focusing on fleet customers at the moment. Canoo claims it has received more than 17,500 pre-orders with an expected value of $750 million and added that it has secured a deal with provide Artemis crew transport.

The company has had a tumultuous history, as Note. It is the subject of an SEC investigation into factors such as the departures of certain executives and the SPAC merger with Hennessy Capital Acquisition Corp. Canoo was also affected by production delays.

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