Written by Cláudio Afonso | LinkedIn | X
Last month, the electric vehicle startup Canoo said it entered into a Prepaid Advance Agreement (PPA) with Yorkville, allowing the company to request cash advances of up to $15 million at a time, with a total limit of $100 million.
This Thursday, the EV maker announced it signed a new supplemental agreement modifying the original PPA where Yorkville agrees to provide Canoo with a cash advance of over $25.1 million — representing an additional $10.1 million for the Texas-based manufacturer.
Canoo shares closed 2% lower on Wednesday at $1.44, 18% higher than its all-time low reached earlier this year in March.
The startup is expected to start production between late 2024 and early 2025 aiming to deliver the first units following a few years of pilot programs with clients such as Walmart, USPS, NASA, among others.
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In the filing, the company said it still owed $15 million in principal and $158,219.18 in accrued interest from a previous PPA from June adding that it used part of the new $25 million advance to repay this outstanding debt from June.
After discounting fees, and the repayment of the outstanding debt from June, Canoo will receive $9.4 million from the First Supplemental Advance.
The company led by Tony Aquila is now required to hold an annual stockholders’ meeting by November 13, to seek approval for the issuance of shares related to the PPA and to amend the PPA and a previous agreement from 2022 to set a “Floor Price.”
Earlier this week, Sohel Merchant, the co-founder and Chief Technology Officer of Canoo, left the company seven years after helping founding it.
The company has recently announced that is moving its headquarters from Torrance to Texas affecting 137 out of the nearly 200 employees.
Written by Cláudio Afonso | LinkedIn | X
Never Miss an Update on Canoo
The post Canoo Secures Additional Yorkville Funding, Vital for Upcoming Production first appeared on EV.