Canoo To Raise Up $200M In Stock Offering While Dropping Guidance

Canoo To Raise Up $200M While Dropping Guidance

EV startup Canoo has signed an agreement to raise up to $200 million more in funding as it says it’s looking to hire about 150 workers.

Canoo announced the at-the-market (ATM) stock sales agreement with Northland Securities Monday for $142,800 million in common stock with an offering price of up to $200 million.

The Northland Securities announcement comes on the heels of Canoo filing a form with the SEC Friday withdrawing its revenue guidance and manufacturing run rates for the remainder of the year and subsequent periods.

On the surface that would seem to indicate that Canoo is less likely to hit its 2024 target of a 20,000 run-rate capacity, or perhaps even the 3,000 actual EVs it forecast making for the year.

Related: More Canoo coverage

Canoo hasn’t discussed production figures recently. Back in April Canoo said it expected to build approximately 3,000 EVs this year using what it calls a stair-step approach to a production ramp, with the capacity to build up to 20,000 by year’s end.

At the time it pointed to Ford’s and Tesla’s equivalent production ramps at similar points in their history as an illustration of a just in time funding and expansion approach.

It seems unlikely that investors will get an explanation for the guidance withdrawal or new guidance before the next quarterly report, which won’t happen until October, at the earliest. Traditionally Canoo has been somewhat slow to schedule quarterly investor calls after a quarter closes.

Meanwhile, Canoo has been moving forward with preparing to move approximately 137 engineering positions from California to Texas and Oklahoma in the fourth quarter of 2024, with the majority of those roles landing in Oklahoma, where it has its assembly and battery plants.

Canoo will be taking part in a Sidoti small-cap virtual conference on September 19, but at the time of this story’s posting Canoo had not released any agenda details.

The EV startup hasn’t announced any new fleet customers recently, although Canoo has previously said it has more than $2 billion worth of orders lined up, with the biggest orders being from Kingbee and Walmart.

Canoo’s stock had fallen from a high of $5.80 in January to $1.01 in Monday morning tradiing on Sept. 16, 2024. At the same time, Canoo is looking to fill 54 positions, according to a link on its website.

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