Written by Cláudio Afonso | LinkedIn | X
Shares of electric vehicle startup Canoo continued to slide on Monday, extending last week’s losses to over 50%. As of writing, Canoo’s stock is down another 30%, trading at $0.38 per share.
If Canoo’s shares remain below Nasdaq’s $1.00 minimum bid requirement for the next twenty consecutive trading days, the company will receive a non-compliance notice from the exchange.
In March, the EV maker faced a similar situation, which it addressed by executing a 1-for-23 reverse stock split.
Companies receiving such a notice typically have 180 days to raise their stock price above $1 for at least 10 consecutive trading sessions to avoid delisting. Canoo may request an additional compliance period if it meets specific financial criteria.
Last week, the company announced it had furloughed 23% of the workforce at its Oklahoma production facility as part of what it described as a “broader realignment of North American operations.”
However, local news outlet KFOR reported discrepancies in the company’s figures. Reporter Dylan Brown cited multiple employees who claim the furlough affected closer to 80-90% of the plant’s staff rather than the 23% stated by Canoo.
Canoo’s internal memo, issued by General Counsel Hector Ruiz, notified staff that the furlough period may be “adjusted at the sole discretion of the company.”
In addition to the furlough, employees were informed that health insurance coverage would end effective October 31, the day they were notified. However, on Saturday, Canoo issued a new statement extending health benefits for furloughed workers through November 30, responding to concerns raised by affected employees.
In a new statement, the EV maker said on Saturday it would extend healthcare benefits for furloughed employees from October 31 to November 30, responding to feedback from affected workers.
“We are committed to supporting our impacted workers during this challenging time and will provide necessary resources to assist them,” Canoo said.
As of Sunday, Canoo listed 76 open positions on LinkedIn, including roles for a Security Manager, Health, Safety and Environmental (HSE) Manager, and a software engineer specializing in over-the-air updates.
Written by Cláudio Afonso | LinkedIn | X
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