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EV Startup Canoo Says It Will Begin Publicly Trading In Late 2020

A SPAC merger values the Los Angeles company at $2.4 billion

Photographer: Jack Schroeder

Canoo, a Los Angeles-based startup that plans to sell electric vehicles by subscription, has reached an agreement to merge with Hennessy Capital Acquisition Corp. IV and begin trading as a public company later this year. 

The merger, first reported by Bloomberg earlier this month, values the combined company at $2.4 billion and will provide more than $600 million toward the development of Canoo’s electric vehicles, according to a statement from the two companies. Hennessy, a special purpose acquisition company, or SPAC, raised $300 million in an initial public offering in March of 2019 with a plan to buy an “industrial growth or industrial infrastructure company.” Hennessy and Canoo expect the transaction to close in the fourth quarter of 2020. The new company will be called Canoo and will be listed on the Nasdaq under the ticker symbol CNOO.