Canoo Tumbles After EV Maker Issues Going Concern Warning
- Startup had just $105 million in cash, equivalents as of March
- Company is facing ‘challenging conditions’ in the market: CEO
The electric Canoo Lifestyle Vehicle at the LA Auto in Nov. 2021.
Photographer: Allen J. Schaben/Los Angeles Times/Getty Images
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Canoo Inc. fell in extended trading after warning shareholders that there is substantial doubt that the electric vehicle startup has enough cash to keep doing business.
The company said Tuesday that it has lined up $300 million in funding from an existing shareholder and an equity purchase agreement with Yorkville Advisors. Canoo also filed a $300 million universal shelf offering. But the company said the timing of the funding raises doubts about its future. Canoo had just $104.9 million in cash and cash equivalents as of March 31.