Lifestyle Vehicle Electric Minivan from Canoo.
Source: Canoo
electric vehicle startup shares Kanu They were sharply lower in early trading on Monday after the company said it had agreed to sell discounted shares to raise $52.5 million.
Shares of Canoo closed down more than 12% on Monday at $1.09. The stock has lost more than 80% of its value in the past 12 months.
Canu said in a statement That it has entered into contracts with institutional investors to sell 50 million new shares, along with warrants that give investors the option to buy up to 50 million more. Investors are paying $1.05 per share, and each share comes with a warrant that can be exercised at $1.30 per share.
Canu did not name the institutional investors involved in the deal.
The deal price is a substantial discount, as Canoo’s shares closed Friday at $1.25. For current shareholders, the deal also means a significant dilution of their holdings, as it will add between 50 million and 100 million shares to the company’s current outstanding share count of 356 million.
Kanu said it was on in november short cash And it expected to raise money by issuing new shares. It had just $6.8 million on hand at the end of the third quarter.
Canoo said Monday that it will use the net proceeds of the offering for “general working capital purposes.” The company is expected to announce its fourth quarter results later this month.
5-day chart of Canoo stock.