Written by Cláudio Afonso | LinkedIn | X
Tony Aquila, the chief executive of the struggling EV company Canoo, reaffirmed the company’s goal of “move up production” next year despite admitting that the next four to six months will be “very tough”.
“Our goal is definitely to move up production in 2025,” he said. “We are big believers in American manufacturing, the heartland, and the workforce there. But the next four to six months will be very tough, and we’re in an uncertain political crossfire,” Aquila said speaking to Autoweek.
Shares of Canoo hit a new record low earlier this week at $0.35 as the company seeks approval for the second reverse stock split in less than a year. As of November 6, the company had $700,000 in cash and cash equivalents, enough for about a month based on its most recent cash burn rate.
“America has to decide whether to lead, follow, or succeed, and I choose to lead,” Aquila told Autoweek. The company has recently announced it furloughed 23% of its factory staff at the Oklahoma plant. However, in a new update, the chief executive said “net-net we’re adding jobs in Oklahoma, as well as engineering roles.”
The stock dipped further this week following the postponement of the annual meeting of shareholders due to a lack of sufficient votes to pass the proposals, which includes the reverse stock split. If approved, it will help Canoo shares meet Nasdaq’s minimum listing requirement of trading at or above $1 per share.
Canoo said last week its Board of Directors “continues to believe that all of the proposals contained in the proxy statement are advisable and in the best interests of the Company’s stockholders to consider and act upon.”
The company disclosed in a new SEC filing on Wednesday that it issued 7,185,125 shares of its common stock raising about $2.87 million to pay suppliers and vendors as its cash reserves approach $0.
The startup has recently reported its third quarter financial results where it disclosed that cash and cash equivalents stood at $1.5 million as of September 30. Over the first five weeks of this quarter, the Texas-headquartered firm disclosed in a SEC filing its cash reserves dropped from $1.5 million to $700,000 as of November 6.
Canoo has recently announced it entered into a $12 million secured revolving credit facility with AFV Management Advisors, LLC, an entity founded by the company’s CEO, Tony Aquila.
Written by Cláudio Afonso | LinkedIn | X
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