Canoo EV Maker Struggles, Stock Crashes, Delisting Looms
Canoo Stock Crashes 50% in Three Sessions Raising Nasdaq Delisting Risk.
Canoo Stock Plunges 27% as Company Confirms it Furloughed 23% of its Factory Workers.
Shares of electric vehicle startup Canoo continued to slide on Monday, extending last week’s losses to over 50%. As of writing, Canoo’s stock is down another 30%, trading at $0.38 per share.

If Canoo’s shares remain below Nasdaq’s $1.00 minimum bid requirement for the next twenty consecutive trading days, the company will receive a non compliance notice from the exchange.
In March, the EV maker faced a similar situation, which it addressed by executing a 1 for 23 reverse stock split.
Companies receiving such a notice typically have 180 days to raise their stock price above $1 for at least 10 consecutive trading sessions to avoid delisting. Canoo may request an additional compliance period if it meets specific financial criteria.
Last week, the company announced it had furloughed 23% of the workforce at its Oklahoma production facility as part of what it described as a broader realignment of North American operations.

However, local news outlet KFOR reported discrepancies in the company’s figures. Reporter Dylan Brown cited multiple employees who claim the furlough affected closer to 80 90% of the plant’s staff rather than the 23% stated by Canoo.

Canoo’s internal memo, issued by General Counsel Hector Ruiz, notified staff that the furlough period may be adjusted at the sole discretion of the company.

In addition to the furlough, employees were informed that health insurance coverage would end effective October 31, the day they were notified. However, on Saturday, Canoo issued a new statement extending health benefits for furloughed workers through November 30, responding to concerns raised by affected employees.

In a new statement, the EV maker said on Saturday it would extend healthcare benefits for furloughed employees from October 31 to November 30, responding to feedback from affected workers.

We are committed to supporting our impacted workers during this challenging time and will provide necessary resources to assist them, Canoo said.

As of Sunday, Canoo listed 76 open positions on LinkedIn, including roles for a Security Manager, Health, Safety and Environmental HSE Manager, and a software engineer specializing in over the air updates.
Canoo Stock Plunges 27% as Company Confirms it Furloughed 23% of its Factory Workers.
Shares of the struggling EV maker Canoo plunged 27.3% on Friday to a new all time low of 55 cents after the company furloughed 23% of its factory workers in Oklahoma for 12 weeks, equivalent to three months.

According to the internal memo sent by Canoo‘s General Counsel and Corporate Secretary Hector Ruiz, the EV maker anticipates that your furlough will last for approximately twelve 12 weeks while asking workers to be aware that this timeline may be changed at the sole discretion of the company.
Speaking to local media outlet Kfor, a worker said, It irritated me because they just had a town hall meeting or something in September where they said they are doing good and they have plans to get everything up and running.

Canoo informed employees that during the next 3 months, workers will not receive the regular salary.

During your furlough period, you will not be actively working, and therefore, you will not receive your regular salary. You may be eligible to apply for unemployment benefits through your state’s unemployment program. To assist you in applying for any eligible benefits, please find your state’s contact information at. We will provide you with any necessary documentation to support your application, Canoo said in the internal memo.
In a statement, the company confirmed on Friday it has made the difficult decision to temporarily reduce our workforce in Oklahoma City by furloughing 23% of our factory workers for a period of twelve weeks as part of a broader realignment of our North American operations.

Here’s the full statement shared by the EV maker on Friday.

#canoo
#canoostock
#canooev
#wordautonews

свернуть