Electric-vehicle maker Canoo Inc. saw its share price sag Monday after the company said it made a deal to sell shares to institutional investors at a discount to generate much-needed cash.
The move will result in about $52.5 million for the company coffers for general working capital, according to a news release.
Canoo shares fell 15 cents, or 12%, to close at $1.09 in trading Monday on the Nasdaq. Shares have traded as low as 98 cents and as high as $6.44 over the past year.
The deal calls for the purchase and sale of 50,000 shares of Canoo’s common stock along with warrants to purchase up to 50,000 additional shares at a combined price of $1.05 per share. The warrants have an exercise price of $1.30 per share. The offering is expected to close Wednesday.
During a conference call in November with analysts, Canoo Chief Executive Officer Tony Aquila said the company had more than $2 billion in its order pipeline for companies including Bentonville-based Walmart. The company has yet to turn a profit.
In November 2021, Canoo said it planned to move its headquarters to Bentonville and has some operations there.