Electric vehicle maker Canoo has warned investors it’s running low on funds as it works toward bringing its products to market. It said that, due to the timing of the announced funding and some other factors, it has “substantial doubt about the company’s ability to continue as a going concern.”
“We have been clear about our philosophy of raising capital judiciously and will continue with this disciplined approach,” CEO Tony Aquila said in a statement. “We have more than $600 million in accessible capital to support Start of Production (SOP). As operators and investors, we have significant experience raising capital in challenging markets — and the best way to raise capital is to achieve your goals. We will continue to raise when needed, bridge to milestones and be in a position to take advantage of improving market conditions. We are focused on long term value creation for our customers and shareholders.”
Canoo reported a $125.4 million net loss in its first-quarter earnings (compared with $15.2 million in Q1 2021). It burned through $120.3 million in the first three months of the year, up from $53.9 million a year earlier. That left it with cash and cash equivalents of $104.9 million as of the end of March.
The company projects operating expenses of between $95 million and $115 million this quarter, as well as $85 million to $105 million in capital expenditures. As it stands, Canoo is not generating revenue.
The EV maker says it had built 39 Gamma lifestyle vans as of the end of March, with 17 of those now on the road. According to Reuters, company leaders said in an earnings call that it’s making up to just 12 vehicles a week and is focusing on fleet customers for the time being. Canoo claims it has received more than 17,500 pre-orders with a projected value of $750 million, and added that it secured a deal with NASA to provide Artemis ground crew transportation vehicles.
The company has had a turbulent history, as TechCrunch notes. It’s been the subject of an SEC investigation into factors such as the departure of certain executives and the SPAC merger with Hennessy Capital Acquisition Corp that took it public. Canoo has also been beset by production delays.
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