Canoo Inc. (GOEV) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Canoo Inc. recently implemented a Reverse Stock Split on March 8, 2024, aiming to increase the market price of its Common Stock and attract a broader investor base. However, there is uncertainty regarding the effectiveness of this strategy, as it is not guaranteed to draw new investors, including those of the institutional variety. Moreover, the possibility of a sustained increase in the stock price remains uncertain, with various external factors such as Canoo’s performance and overall market conditions playing significant roles. The risk of a post-split decline in stock value looms, which could potentially lead to delisting from The Nasdaq Capital Market if the share price stays below $1.00 for an extended period.
Overall, Wall Street has a Strong Buy consensus rating on GOEV stock based on 4 Buys and 1 Hold.
To learn more about Canoo Inc.’s risk factors, click here.
