Announcement • Dec 08
Canoo Receives Notice from the Nasdaq Stock Market Regarding Minimum Bid Price Requirement On December 4, 2024, Canoo Inc. received notice from The Nasdaq Stock Market that the closing bid price for our common stock had been below $1.00 per share for the previous 30 consecutive business days, and that we are therefore not in compliance with the minimum bid price requirement for continued inclusion on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) (“ Rule 5550(a)(2)”). Nasdaq’s notice has no immediate effect on the listing or trading of our common stock on The Nasdaq Capital Market. The notice indicates that we will have 180 calendar days, until June 2, 2025, to regain compliance with this requirement. We can regain compliance with the $1.00 minimum bid listing requirement if the closing bid price of our common stock is at least $1.00 per share for a minimum of ten (10) consecutive business days during the 180-day compliance period. If the Company does not regain compliance during the initial compliance period, we may be eligible for an additional 180 day period to regain compliance. To qualify, we would be required to meet the continued listing requirement for market value of our publicly held shares and all other Nasdaq initial listing standards, with the exception of the minimum bid price requirement under Rule 5550(a)(2), and we would need to provide written notice to Nasdaq of our intention to cure the deficiency during the second compliance period. If it appears to Nasdaq that we will not be able to cure the deficiency, or if we are otherwise not eligible, we expect that Nasdaq will notify us that our common stock will be subject to delisting. We will have the right to appeal a determination to delist our common stock, and our common stock would remain listed on The Nasdaq Capital Market until the completion of the appeal process. We intend to actively monitor the minimum bid price of our common stock and may, as appropriate, consider available options to regain compliance with Rule 5550(a)(2), including undertaking a reverse stock split. However, there can be no assurance that the Company will be able to regain compliance with Rule 5550(a)(2). Announcement • Nov 07
Canoo Inc. to Report Q3, 2024 Results on Nov 13, 2024 Canoo Inc. announced that they will report Q3, 2024 results After-Market on Nov 13, 2024 Announcement • Nov 06
Canoo Inc. announced a financing transaction Canoo Inc. announced that it has entered into a revolving credit facility agreement for a private placement on November 5, 2024. The transaction will include participation from an returning lender, AFV Management Advisors LLC. The company has issued secured credit facility note in the transaction. The note bear interest at the One-Month Secured Overnight Financing Rate (SOFR) plus 6.00%, with interest paid monthly, and principal to be repaid within 120 days of being drawn. The company may prepay amounts due under the note in whole or in part at any time without premium or penalty. The lender remains committed to fund $2,000,000 of additional advances under the secured WC facility for certain approved purposes, provided all conditions to such funding are met. The company has raised $3,855,322 in its first tranche. Announcement • Oct 09
Canoo Inc., Annual General Meeting, Nov 22, 2024 Canoo Inc., Annual General Meeting, Nov 22, 2024. Announcement • Sep 20
Canoo’s Oklahoma City Manufacturing Facility Achieves Final Activation as First Automotive Foreign-Trade Zone in the State of Oklahoma Canoo Inc. announced that the U.S. Customs and Border Protection (CBP) has officially approved final activation of Canoo's Oklahoma City operations as a Foreign-Trade Zone (FTZ), becoming one of the largest FTZs in the State of Oklahoma. This activation status qualifies Canoo to take advantage of FTZ benefits, effective immediately. This final designation will allow Canoo to significantly streamline its operations, offering financial and logistical benefits as the company scales production of its modular electric commercial vehicles for customers in the U.S., the United Kingdom, Europe, and the Middle East. Canoo has worked for approximately a year with the U.S. Customs & Border Protection for approval and activation of the FTZ. Initial approval was received in March 2024 and over the last several months Canoo completed this final activation milestone for this facility, which includes having the necessary infrastructure to activate the site. Announcement • Aug 30
Canoo Inc. has filed a Follow-on Equity Offering in the amount of $25.158219 million. Canoo Inc. has filed a Follow-on Equity Offering in the amount of $25.158219 million.
Security Name: Common Stock
Security Type: Common Stock Announcement • Jul 24
Canoo Inc. has filed a Follow-on Equity Offering in the amount of $15 million. Canoo Inc. has filed a Follow-on Equity Offering in the amount of $15 million.
Security Name: Common Stock
Security Type: Common Stock Announcement • Jul 23
Canoo Inc. to Report Q2, 2024 Results on Aug 14, 2024 Canoo Inc. announced that they will report Q2, 2024 results After-Market on Aug 14, 2024 Announcement • May 16
Canoo Inc. Reaffirms Earnings Guidance for the Year 2024 Canoo Inc. reaffirmed earnings guidance for the year 2024. The company's previously issued guidance remains unchanged. Announcement • May 05
Canoo Inc. to Report Q1, 2024 Results on May 14, 2024 Canoo Inc. announced that they will report Q1, 2024 results After-Market on May 14, 2024 Announcement • Apr 11
Canoo Inc. announced that it expects to receive $10 million in funding Canoo Inc. announced that it has entered into a securities purchase agreement with certain special purpose vehicles managed by entities affiliated with Tony Aquila to issue 10,000 Series C Cumulative Perpetual Redeemable Preferred Stock at an issue price of $1,000 per share share for the gross proceeds of $10,000,000 and pursuant to which the Company issued warrants to purchase in the aggregate 4,473,272 shares of Common Stock on April 9, 2024. Each Holder has the right, at its option, to convert its Preferred Stock, in whole or in part, into fully paid and non-assessable shares of Common Stock at a conversion price equal to the lesser of (i) 120% of the average of the closing sale prices per share of the Common Stock for the ten consecutive trading days immediately preceding the conversion the Conversion Price shall be determined based on 100% of the Average Common Stock Price instead of 120% and (ii) $2.2355 provided that in no event shall the Conversion Price be less than $2.00. The Conversion Price is subject to customary adjustments, including in the event of any stock split, stock dividend, recapitalization or similar events. The Preferred Stock cannot be converted if such conversion would result in an issuance of Common Stock above the Exchange Cap. In addition, in connection with the Purchase Agreement, the Company will issue to the Purchasers Warrants to purchase in the aggregate 4,473,272 shares of Common Stock at an exercise price of $2.2355.The warrants will be immediately exercisable upon issuance and will expire five years from such issuance. The Warrants include customary adjustment provisions for stock splits, combinations and similar events. The conversion of shares shall not be less than $2.33 per share. The issuance of the Preferred Shares and Warrants was exempt from registration pursuant to Section 4(a)(2) of the Securities Act. Each Purchaser represented to the Company that they are each an “accredited investor” as defined in Rule 501 of the Securities Act and that each of the Preferred Shares and Warrants were acquired for investment purposes and not with a view to, or for sale in connection with, any distribution thereof. Announcement • Apr 04
Canoo Inc. Provides Earnings Guidance for the Year 2024 Canoo Inc. provided earnings guidance for the year 2024. For the year, the company expects annual revenue of $50 million to $100 million. Announcement • Mar 12
Canoo Inc. to Report Q4, 2023 Results on Apr 01, 2024 Canoo Inc. announced that they will report Q4, 2023 results at 4:00 PM, US Eastern Standard Time on Apr 01, 2024 Announcement • Mar 07
Canoo Initiates a 1-for-23 Reverse Stock Split to Stay Listed EV startup Canoo Inc. (GOEV) is throwing out a lifeline to keep its shares listed on the NASDAQ exchange. Canoo announced a 1-for-23 reverse stock split Wednesday as share prices hit a new all-time low. The reverse stock split will go into effect on March 8, 2024, before the market opens. Canoo’s stock will continue trading under the ticker symbol GOEV. Announcement • Feb 27
Canoo Inc. announced that it has received funding from State Of Oklahoma Canoo Inc. announced a private placement that it has received funding from new investor, State Of Oklahoma on February 27, 2024. Announcement • Jan 06
Canoo Inc. Announces Resignation of Greg Ethridge as Member of the Board of Directors On August 28, 2023, Canoo Inc. announced the appointment of Greg Ethridge as Chief Financial Officer of the Company, effective immediately. In connection with his appointment as Chief Financial Officer of the Company, Mr. Ethridge resigned from his position as a member of the Board of Directors (the Board") of the Company, on and effective as of December 31, 2023. Announcement • Dec 11
Canoo Inc. Names Michael Carter as Chief People Officer Canoo Inc. announced Michael Carter as Chief People Officer. Carter will be responsible for helping the company through its growth and scaling manufacturing in Oklahoma. Carter has more than two decades of human resources leadership experience from Fortune 500 and Silicon Valley technology companies, including Cisco, Intel, and Qualcomm. Prior to joining Canoo, Carter was vice president of people at Lucid Group Inc. where he was responsible for bringing together software and automotive talent with HR strategies and initiatives. Before that, he was VP of human resources at Samsung Electronics. Announcement • Nov 12
Canoo Inc. Unveils the American Bulldog Canoo Inc. introduced the American Bulldog. This vehicle is a derivative of the Screaming Eagle that was delivered to the U.S. Army for extensive testing in 2022. The American Bulldog builds upon Canoo's rapid product development and real-world testing. A powerhouse of engineering, this vehicle sets a new mobility standard and reflects the grit and resolve of the American people. It combines striking design with world-class performance while emphasizing minimalism with maximum functionality for work, adventure, and service. On two wheels or four, this vehicle performs like a battleship. The vehicle's strength comes from its honeycomb design. It's strong and rigid but almost soars like an eagle through harmonized steer-by-wire and brake-by-wire systems. Driven by Canoo's continuous advanced technologies, this high-tech marvel is entirely different on the inside and on the outside. Most engineers wouldn't believe what Canoo has achieved: this vehicle is a masterclass in form and function. Announcement • Nov 03
Canoo Inc. to Report Q3, 2023 Results on Nov 14, 2023 Canoo Inc. announced that they will report Q3, 2023 results After-Market on Nov 14, 2023 Announcement • Oct 28
Canoo Inc., Annual General Meeting, Dec 19, 2023 Canoo Inc., Annual General Meeting, Dec 19, 2023. Announcement • Sep 27
Canoo Inc. announced that it has received $40.7 million in funding from Yorkville Advisors Global LP Canoo Inc. announced that it has entered into a securities purchase agreement with returning investor YA II PN, Ltd., a fund managed by Yorkville Advisors Global LP to issue convertible debentures in an aggregate principal amount of $15,000,000 for aggregate gross proceeds of $12.5 million and additional convertible option debentures in an aggregate principal amount of up to $30,000,000 for aggregate gross proceeds of $28.2 million; for aggregate total gross proceeds of $40,700,000 on September 26, 2023. The convertible debentures bear interest at a rate of 3% per annum, subject to increase to 15% per annum upon the occurrence of certain events of default. The initial debenture will mature on November 26, 2024, and may be extended at investor’s option. The option debenture, to the extent issued, will mature 14 months after the date the option debenture is issued. The option debenture may only be exercised by investor during the period of 20 trading days following the date on which the company has publicly announced that it has obtained the stockholder approval. The convertible debentures are convertible at the option of the holder into a number of shares of the company’s common stock, par value $0.0001 per share at a conversion value of lower of $0.50 per share in case of Initial Debenture and in the case of the Option Debenture, $0.5358 per share and 95% of the lowest daily volume-weighted average price of the common stock during the five consecutive trading days immediately preceding the applicable conversion date, but not lower than $0.10 per share. The company shall not issue any common stock upon conversion of the convertible debentures held by investor prior to the company's receipt of the stockholder approval and following the company's receipt of the stockholder approval, if the issuance of such shares of common stock underlying the convertible debentures would exceed the aggregate number of shares of common stock that the company may issue upon conversion of the convertible debentures. In addition, the company issued to investor a warrant to purchase 27,995,520 shares of common stock at an exercise price of $0.5358. If investor exercises the option, the company will issue an additional Option Warrant and together with the Initial Warrant for a number of shares of common stock determined by dividing the principal amount so exercised by $0.5358. The Initial Warrant is immediately exercisable and will expire on September 26, 2028. The Option Warrant, to the extent issued, will be issued on the same terms as the Initial Warrant except that the exercise price of the Option Warrant will be $0.67 per share. Upon the occurrence of certain trigger events, the company will be required to make monthly cash payments of principal in the amount of $3,750,000 plus a premium equal to 5.0% of such principal amount plus all accrued and unpaid interest as of such payment. Such payments will commence 10 trading days following the occurrence of a trigger event and continue on a monthly basis thereafter until the convertible debentures are repaid in full. The issuance of Convertible Debentures and Warrants was exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. Announcement • Sep 17
Canoo Provides Update on Listing Transfer from Nasdaq Global Select Market to Nasdaq Capital Market As previously disclosed, on March 27, 2023, Canoo Inc. received a letter from the Listing Qualifications Department indicating that, based upon the closing bid price of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), for the prior 30 consecutive business days, the Company was not in compliance with the $1.00 minimum bid price requirement set forth in Nasdaq Listing Rule 5450(a)(1) for continued listing on The Nasdaq Global Select Market (the “Bid Price Requirement”) . Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company was granted 180 calendar days, or until September 25, 2023, to regain compliance with the Bid Price Requirement. On August 23, 2023, the Company applied to transfer its securities from The Nasdaq Global Select Market to The Nasdaq Capital Market. Along with its application, the Company also provided written notice to the Staff of its intention to cure the deficiency. On September 14, 2023, the Company received a letter from the Staff approving the Company’s application to list its securities on The Nasdaq Capital Market. The Company’s securities will be transferred to The Nasdaq Capital Market at the opening of business on September 18, 2023. The Company’s Common Stock and warrants will continue to trade under the symbols “GOEV” and “GOEVW”, respectively. The Nasdaq Capital Market is a continuous trading market that operates in substantially the same manner as The Nasdaq Global Select Market and listed companies must meet certain financial requirements and comply with Nasdaq’s corporate governance requirements. Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), if a company listed on The Nasdaq Capital Market is not deemed in compliance before the expiration of the 180-day compliance period, it will be afforded an additional 180-day compliance period, provided that on the 180th day of the first compliance period it meets the applicable market value of publicly held shares requirement for continued listing and all other applicable standards for initial listing on the The Nasdaq Capital Market (except the Bid Price Requirement). The Company will continue to monitor the closing bid price of its Common Stock and consider implementing available options to regain compliance with the Bid Price Requirement within the allotted compliance period, including by effecting a reverse stock split, if necessary. If at any time during the allotted compliance period, the closing bid price of the Company’s Common Stock is at least $1 per share for at least a minimum of 10 consecutive business days, Nasdaq will provide the Company with written confirmation of compliance and the matter will be closed. If the Company does not regain compliance within the allotted compliance period, Nasdaq will provide notice that the Company’s Common Stock will be subject to delisting. The Company would then be entitled to appeal that determination to a Nasdaq hearings panel. There can be no assurance that the Company will regain compliance with the Bid Price Requirement within the allotted compliance period, or that if the Company appeals a Nasdaq determination, that such an appeal would be successful. The Company’s management intends to resolve this matter so as to allow for continued listing and is considering its options to regain compliance with the Bid Price Requirement. The Company’s approval of its application from the Staff does not affect the Company’s reporting requirements with the Securities and Exchange Commission. Price Target Changed • Aug 24
Price target decreased by 12% to US$3.11 Down from US$3.53, the current price target is an average from 5 analysts. New target price is 505% above last closing price of US$0.51. Stock is down 86% over the past year. The company is forecast to post a net loss per share of US$0.57 next year compared to a net loss per share of US$1.81 last year. Major Estimate Revision • Aug 21
Consensus revenue estimates decrease by 29%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$98.0m to US$69.3m. EPS estimate increased from -US$0.784 to -US$0.597 per share. Auto industry in the US expected to see average net income decline 1.2% next year. Consensus price target broadly unchanged at US$3.50. Share price fell 13% to US$0.44 over the past week. New Risk • Aug 17
New minor risk - Financial position The company has less than a year of cash runway based on its current free cash flow. Free cash flow: -US$358m This is considered a minor risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (16% average weekly change). Shareholders have been substantially diluted in the past year (130% increase in shares outstanding). Revenue is less than US$1m. Minor Risk Less than 1 year of cash runway based on current free cash flow (-US$358m). Announcement • Aug 01
Canoo Inc. to Report Q2, 2023 Results on Aug 14, 2023 Canoo Inc. announced that they will report Q2, 2023 results After-Market on Aug 14, 2023 New Risk • Jul 26
New major risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 15% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (111% increase in shares outstanding). Revenue is less than US$1m. Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (US$48m net loss in 3 years). Share price has been volatile over the past 3 months (15% average weekly change). Major Estimate Revision • Jun 28
Consensus revenue estimates decrease by 19%, EPS upgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$128.8m to US$104.3m. EPS estimate increased from -US$0.82 to -US$0.785 per share. Auto industry in the US expected to see average net income decline 7.4% next year. Consensus price target broadly unchanged at US$3.53. Share price fell 24% to US$0.42 over the past week. Announcement • May 05
Canoo Inc. to Report Q1, 2023 Results on May 15, 2023 Canoo Inc. announced that they will report Q1, 2023 results at 4:00 PM, US Eastern Standard Time on May 15, 2023 Price Target Changed • Apr 04
Price target decreased by 20% to US$6.50 Down from US$8.13, the current price target is an average from 2 analysts. New target price is 949% above last closing price of US$0.62. Stock is down 90% over the past year. The company is forecast to post a net loss per share of US$1.02 next year compared to a net loss per share of US$1.81 last year. Announcement • Jan 27
Canoo Inc. Announces Chief Financial Officer Changes Canoo Inc. named Ken Manget, Chief Financial Officer. Reporting directly to Canoo Chairman and CEO, Tony Aquila, Manget will be responsible for Capital Markets, Investor Relations, Accounting & Financial Reporting. Ramesh Murthy, who served as interim CFO, will continue in his role as Senior Vice President, Finance and Chief Accounting Officer. Manget has many years of financial industry experience on the buy and sell side, including running a multi-billion global equity investment strategy at Ontario Teachers' Pension Plan, and having originated and closed several billion of equity, debt and structured finance transactions while at BMO Capital Markets. Recent Insider Transactions • Nov 18
President & Director recently sold US$53k worth of stock On the 16th of November, Josette Sheeran sold around 37k shares on-market at roughly US$1.44 per share. This transaction amounted to 2.6% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Josette has been a net seller over the last 12 months, reducing personal holdings by US$475k. Board Change • Nov 16
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. No experienced directors. No highly experienced directors. Independent Director Foster Chiang is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Seeking Alpha • Oct 07
Canoo: Saved From The Brink By Walmart Summary
Canoo's deal with Walmart provides clear revenue visibility at a time when its future looked increasingly bleak.
Its dwindling cash balance is set to be boosted by a series of dilutive equity raises.
Management has pivoted again to outsourcing production of its Lifestyle Vehicle to a third party as executive departures mount.
Canoo's (GOEV) vehicles with their sleek and futuristic look have been described as space-age and a refreshing departure from established design consensus. This helped differentiate Canoo from a rush of EV companies that also went public via SPACs and contributed to investor enthusiasm for its common shares.
Canoo
However, it has failed to be translated into meaningful sales with the company still pre-revenue and fast burning through its dwindling cash reserves more than 2 years since it went public. Canoo's financial health and operational standing have since taken consecutive hits over the last few months with shares hitting new lows recently.
The company has since announced a deal to supply Walmart (WMT) with at least 4,500 of its Lifestyle Delivery vehicles. This represents a transformational change of fortunes and provides clear revenue visibility for fiscal 2023 and beyond. Further, Autonomy, an EV subscription startup, included Canoo in a list of 17 other automakers in a $1.2 billion purchase order. The company has also been selected by the US army to supply its Multi-Purpose Delivery Vehicle for analysis and demonstration. The scope for this to be transformed into a purchase order cements a great turnaround when aggregated with the broader operational momentum the company has garnered over the last few months.
Canoo x Walmart
The deal with Walmart will provide a material boost for struggling Canoo and would be even more transformational if Walmart activates its option to buy a further 5,500 vehicles for 10,000 in total. Canoo expects to start making deliveries to Walmart from the first quarter of 2023 in a deal that will also see Walmart issued with a warrant to purchase up to an aggregate of 61.1 million shares at an exercise price of $2.15 per share.
As part of the agreement, Canoo will not sell any of its vehicles to Amazon (AMZN) as production is also outsourced to an unspecified third-party contractor. This is a change from previous plans to assemble the Lifestyle Vehicle at its Bentonville, Arkansas factory. For Walmart, the Lifestyle Delivery Vehicle will allow for last-mile deliveries and will support its growing eCommerce business with 90% of the U.S. population within 10 miles of its stores. Whilst a significant operational win for Canoo, the management pivot to use a third-party contractor likely puts Bentonville, Arkansas-based Walmart in an awkward position as production being located in Walmart's home state of Arkansas was touted in the company's news release about the deal.
The main overhang that remains is whether the company has enough capital to see it through the next few quarters of growth. Indeed, Canoo last reported earnings for its fiscal 2022 second quarter which saw operating expenses come in at $173.5 million, up from $104.3 million in the year-ago quarter. Net loss at $164.4 million was also up from a year-ago figure of $112.6 million. The company ended the quarter with $36.5 million in cash and equivalents which is anemic against cash burn from operations that stood at $117.2 million during the quarter. Hence, the company has started to activate dilutive fundraising options to remain a going concern. The warrant deal with Walmart amounts to more than 20% of all the outstanding shares and should help the company raise enough money to get through to 2023. Further, Canoo has partnered with Yorkville Advisors to sell up to $250 million of its shares. Seeking Alpha • Sep 07
Canoo: Buy This Cheap EV Stock For The Long Term Summary
Canoo is one of my favorite cheap EV stocks to buy under $5 for the long term.
The company received a massive 4,500 EV order from Walmart with the option to purchase an additional 5,500 EVs for 10,000 in total.
GOEV stock plans to start production in 2023 and looks like a safe buy at these current price levels.
Canoo (GOEV) is currently my favorite cheap EV stocks under $5 to buy right now. The company has changed quite a bit over the last several months even though investors are pricing GOEV stock based on its previous cash liquidity concerns.
The most notable news is the massive 4,500 EV order coming from Walmart (WMT) that certainly piqued my interest.
Another positive sign was a 200,000 share insider buy at an average price of $2.99 from Canoo CEO, Tony Aquila.
In this article, I'll cover the most important key points on why I'm bullish on GOEV stock over the long run.
Overview
Canoo is an EV maker based out of Bentonville, Arkansas that produces lifestyle, last-mile delivery, and pickup truck electric vehicles.
Canoo EV Models (Canoo.com)
The company isn't currently generating any revenue but plans to start producing EVs in early 2023. Canoo will produce its EVs in Arkansas and Oklahoma.
Just like most EV SPACs, Canoo is just getting started and has a lot of potential to disrupt the legacy automotive market.
A few months ago, Canoo looked like it was on the verge of bankruptcy until Walmart place a massive EV order that caught everyone's attention.
Walmart Order Details
On July 11th, 2022, Walmart entered an agreement with Canoo to purchase 4,500 last-mile delivery vans with an option to purchase an additional 5,500 EVs.
Canoo Walmart EV (Carpexpert.co.au)
Walmart already paid $300 million in advance for the initial EV order to boost Canoo's balance sheet and give the company enough cash to fund production.
Also, Canoo issued Walmart a warrant for 61.2 million shares at an exercise price of $2.15 per share. This is a huge bullish sign, and I wouldn't be surprised if Walmart exercised these warrants to own a stake in the company.
Amazon owns an $11.5 billion stake in Rivian (RIVN) and it makes sense that Walmart would own a major stake in Canoo to mimic Amazon's Rivian investment.
Without the Walmart Order, I highly doubt Canoo would have avoided bankruptcy due to its shaky financial situation.
However, I believe Canoo management made a smart move by moving the company headquarters to Bentonville, Arkansas (the same city that Walmart was founded in) to get closer to a key potential customer.
This is a huge milestone for not only Canoo but the entire EV industry because Walmart is the largest employer in the United States.
The EV movement slowed down a bit due to inflation concerns and a US recession, but major corporations continue laying down the groundwork for the inevitable transition in the future.
My Bullish Thesis
GOEV shares once traded at $10 after the SPAC IPO closed and now are down 62% over the last year.
GOEV data by YCharts
Canoo's market cap is around $800 million, making this a small-cap EV stock with lots of potential.
The Walmart order and 61.2 million shares via warrants is a major buy signal in my opinion.
Walmart already prepaid for its 4,500 EVs, which gives Canoo quick access to $300 million in revenue upfront. The $200 million at-the-market offering also frees up a lot more cash.
Capital expenditures were $65.4 million for the first 6 months of 2022.
The company only has $33 million on its balance sheet as of Q2 2022, but the Walmart prepayment and at-the-market offering mean Canoo can remain in business at least up until 2024.
New partnerships with the US Army and NASA add to Canoo's legitimacy as a future EV leader. However, GOEV stock has been crushed along with the entire EV industry lately.
Higher interest rates hurt growth stocks, but I think $2.15 is a solid price floor for GOEV shares. Canoo would be valued at a ~$600 Million market cap at $2.15, which is much closer to its 70 cents book value per share.
If Walmart orders the additional 5,550 EVs, then the entire order value will be worth $666 million. That would be more than the entire market cap if GOEV stock falls closer to $2. Seeking Alpha • Aug 21
Canoo: Yet Another SPAC Birthed EV Debacle Today, we take our first look at Canoo Inc., an EV manufacturing concern that came public via a SPAC in late 2020.
Like so many EV names from that 'vintage', the stock has been a disaster to this point for shareholders.
Does new insider buying from the company's CEO portend a potential turnaround? An investment analysis follows in the paragraphs below.
Every generation laughs at the old fashions, but follows religiously the new. ― Henry David Thoreau
Today, we put Canoo Inc. (GOEV) in the spotlight for the first time. This EV related concern came public in December of 2020 as the result of it business combination between Canoo (CNOO) and Hennessy Capital Acquisition Corp. IV (HCAC). Like so many others that took a similar path to being a public company in 2020 and 2021, the result has been an absolute debacle for shareholders to this point. Recently the company's CEO purchased nearly $800,000 worth of shares. A sign of confidence in Canoo's long-term future? An analysis follows below.
Seeking Alpha
Company Overview
Canoo Inc. is based just outside of Los Angeles. The company designs and manufactures electric vehicles for the commercial and consumer markets in the United States. It has a variety of offerings it is working to deliver including lifestyle delivery vehicles, lifestyle vehicles, multi-purpose delivery vehicles, and pickups. The stock currently trades just above $3.50 a share and sports an approximate market capitalization of $1 billion.
August Company Presentation
The company has spent the past few years ramping up (vehicle design, testing, certification, building manufacturing capability, etc...) to the production stage of Canoo's journey. The company has purposely built flexibility into its manufacturing processes to be able to build a variety of different types of electric vehicles, both now and in the future.
August Company Presentation
Concurrently, the company has been booking pre-orders and believes it has an approximate $1 billion sales pipeline at this point. The start of production should commence sometime in the fourth quarter of this year. Leadership projects it will be producing at a 20,000 annual vehicle rate by the end of 2023.
August Company Presentation
In addition, the company has an important partnership with retailing giant Walmart (WMT) with the latter committed to buy 4,500 electric vehicles with the option to purchase up to 10,000 worth within that agreement. This agreement was just signed around six weeks ago. This deal also gave Walmart a warrant to purchase up to an aggregate of 61,160,011 shares at an exercise price of $2.15 per share in GOEV and the company cannot sell vehicles to Amazon (AMZN) as well. The warrant covers over 20% of all the outstanding shares in GOEV currently. Walmart will receive the first vehicles off Canoo's production line when it commences.
Second Quarter Results
On August 8th, the company posted its second quarter earnings report. Canoo had a GAAP loss of 68 cents a share for Q2. Just after quarter ended, the company signed the contract with Walmart as described above and Canoo has also now completed 90% of their structural crash testing in the quarter and are now moving to the final phase of Federal Motor Vehicle Safety Standard certification.
August Company Presentation
Operating expenses are accelerating as the company moves towards full production mode.
Analyst Commentary & Balance Sheet
Since second quarter results hit the wires, both H.C. Wainwright ($10 price target) and RF Lafferty ($15 price target) have reissued their Buy ratings on the stock while Roth Capital downgraded its view on Canoo to a Hold.
Unfortunately the insider purchase has been swamped by sales by other insiders. A beneficial owner has sold nearly $18 million worth of shares in July and so far in August. Three other officers of the company have disposed with approximately $440,000 worth of stock in aggregate over that time as well. In addition, it appears just over a quarter of the outstanding float of the stock is currently held short.
August Company Presentation
The company ended the second quarter of this year with just under $35 million of cash and marketable securities after burning through nearly $240 million worth of cash during the first half of 2022. The company also had access of up to $250 million, including approximately $220 million of unused capacity on its SEPA facility at that time. Canoo recently announced that it had signed a direct stock purchase deal to raise up to $200 million with Evercore Group L.L.C. and H.C. Wainwright & Co., LLC. The company access to funding to start up production is outlined below.
August Company Presentation
Verdict
The three analysts that cover this stock and have projections have wide ranges to their revenue and earnings expectations for the company in FY2022 and FY2023. This fiscal year, they have the company losing $1.40 to $2.42 a share on sales of anywhere between $1 million and $180 million. Next year they see continued losses in the $1.48 to $1.87 a share range as revenues soar to between $342 million to $605 million. Recent Insider Transactions • Aug 20
President & Director recently sold US$422k worth of stock On the 17th of August, Josette Sheeran sold around 108k shares on-market at roughly US$3.90 per share. In the last 3 months, there was an even bigger sale from another insider worth US$11m. This was Josette's only on-market trade for the last 12 months. Price Target Changed • Aug 09
Price target decreased to US$9.50 Down from US$11.25, the current price target is an average from 4 analysts. New target price is 179% above last closing price of US$3.41. Stock is down 57% over the past year. The company is forecast to post a net loss per share of US$2.24 next year compared to a net loss per share of US$1.52 last year. Recent Insider Transactions • Jul 21
Insider recently sold US$7.4m worth of stock On the 19th of July, Pak Tam Li sold around 2m shares on-market at roughly US$4.02 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$6.7m more than they bought in the last 12 months. Major Estimate Revision • Jul 14
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$153.6m to US$121.3m. EPS estimate increased from -US$2.26 to -US$2.23 per share. Auto industry in the US expected to see average net income growth of 5.0% next year. Consensus price target broadly unchanged at US$12.33. Share price rose 90% to US$4.61 over the past week. Price Target Changed • May 14
Price target increased to US$16.67 Up from US$13.50, the current price target is an average from 5 analysts. New target price is 408% above last closing price of US$3.28. Stock is down 55% over the past year. The company is forecast to post a net loss per share of US$2.15 next year compared to a net loss per share of US$1.52 last year. Board Change • Apr 27
High number of new and inexperienced directors There are 9 new directors who have joined the board in the last 3 years. The company's board is composed of: 9 new directors. No experienced directors. No highly experienced directors. Independent Director Foster Chiang is the most experienced director on the board, commencing their role in 2020. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Major Estimate Revision • Apr 08
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$133.2m to US$153.6m. EPS estimate unchanged from -US$2.10 at last update. Auto industry in the US expected to see average net income growth of 1.3% next year. Consensus price target up from US$13.75 to US$16.67. Share price fell 3.3% to US$5.25 over the past week. Price Target Changed • Apr 06
Price target increased to US$16.67 Up from US$14.00, the current price target is an average from 5 analysts. New target price is 199% above last closing price of US$5.57. Stock is down 42% over the past year. The company is forecast to post a net loss per share of US$2.10 next year compared to a net loss per share of US$1.52 last year. Recent Insider Transactions • Mar 10
Lead Independent Director recently bought US$260k worth of stock On the 4th of March, Thomas Dattilo bought around 50k shares on-market at roughly US$5.20 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$655k more in shares than they have sold in the last 12 months. Announcement • Feb 15
Canoo Inc. to Report Q4, 2021 Results on Feb 28, 2022 Canoo Inc. announced that they will report Q4, 2021 results After-Market on Feb 28, 2022