JUSTIN, Texas - Canoo Inc. (NASDAQ: NASDAQ:GOEV), an automotive tech company specializing in electric vehicles, has announced the furlough of 82 employees and the idling of its manufacturing facilities in Oklahoma. The decision comes as the company seeks to secure necessary capital to continue its operations. According to InvestingPro data, the company's stock has declined over 98% in the past year, with its market capitalization now at approximately $13 million.
The furloughs affect both salaried and hourly workers, and the company expressed regret over the timing during the holiday season. Canoo remains in advanced discussions with potential sources of capital and is hopeful to reinstate its workforce soon. Financial data from InvestingPro shows the company's current ratio at 0.14, indicating significant liquidity challenges, with short-term obligations exceeding liquid assets.
Founded in 2017, Canoo develops electric vehicles with a focus on innovative design and steer-by-wire technology. The company's modular platform is designed to maximize interior space and adapt to various commercial and government applications. Headquartered in Justin, Texas, Canoo maintains teams across California, Michigan, and Oklahoma, with facilities in Oklahoma City.
The recent developments come amid a broader context of challenges for Canoo, including market conditions and the need to maintain compliance with Nasdaq Listing standards. The information provided in the press release contains forward-looking statements under the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.
Investors are cautioned that these statements are based on current expectations of Canoo's management and are not predictions of actual performance. They are subject to risks and uncertainties, and actual results may differ materially. The company has detailed these risks in its filings with the U.S. Securities and Exchange Commission.
This news is based on a press release statement from Canoo Inc. and has not been independently verified. The company has not provided a definitive timeline for the resolution of its capital needs or the potential return of its furloughed employees. InvestingPro analysis indicates the company is currently trading below its Fair Value, with 20+ additional key insights available to subscribers, including detailed financial health metrics and growth projections.
In other recent news, Canoo Inc. reported significant strategic shifts and financial results. The company announced a record revenue of $891,000 for a recent quarter, along with an improved adjusted EBITDA loss of $37.7 million, marking a 6.5% reduction from the previous year. Canoo also reported the resignation of James C. Chen from the board of directors and furloughs of additional employees as part of their strategy to streamline costs.
In a unique approach to capital management, Canoo has issued shares to certain vendors as payment for services. The company has also secured a service, maintenance, and repair agreement with Northside Truck & Van Ltd. in the UK, aiming to support Canoo's light commercial vehicles for its commercial fleet and government customers.
Analyst firm H.C. Wainwright, however, adjusted its outlook on Canoo by reducing its price target to $2.00 from the previous $4.00, while maintaining a Buy rating on the stock. Despite these recent developments, Canoo stresses the necessity for additional capital to sustain operations through the end of 2024 and is actively seeking financing.
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