Shares of EV company Canoo (NASDAQ:GOEV) nosedived today, which can be attributed to a direct offering. The company announced that it will issue 50 million shares and warrants at a total price of $1.05 per unit. This equates to roughly $52.5 million in gross proceeds. In addition, the warrants will expire in five years and have a strike price of $1.30 per share.
Management intends to use the proceeds for general working capital. However, a look at Canoo’s balance sheet trends indicates a company that may be in trouble. Indeed, Canoo has burned roughly $400 million since September 2021.
When looking at the firm’s share price action over the past 12 months, it appears that investors have taken notice of its financial troubles. In fact, GOEV stock lost over 78% of its value during this timeframe.
