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Canoo | 8-K: Securities Purchase Agreement

SEC announcement ·  Apr 11 18:05
Summary by Futu AI
On April 9, 2024, Canoo Inc., an automotive company, entered into a securities purchase agreement with entities managed by Tony Aquila, the CEO and Executive Chair of Canoo. The agreement involves the sale of 10,000 shares of Series C Cumulative Perpetual Redeemable Preferred Stock and warrants to purchase approximately 4.47 million shares of common stock, amounting to a total purchase price of $10 million. The transaction is expected to close within 20 business days, subject to standard conditions. Additionally, the purchasers have an option to buy up to an additional $15 million of the same securities under similar terms within 20 business days. Canoo has agreed to file a shelf registration statement for the resale of the underlying shares and will hold a special meeting to seek shareholder...Show More
On April 9, 2024, Canoo Inc., an automotive company, entered into a securities purchase agreement with entities managed by Tony Aquila, the CEO and Executive Chair of Canoo. The agreement involves the sale of 10,000 shares of Series C Cumulative Perpetual Redeemable Preferred Stock and warrants to purchase approximately 4.47 million shares of common stock, amounting to a total purchase price of $10 million. The transaction is expected to close within 20 business days, subject to standard conditions. Additionally, the purchasers have an option to buy up to an additional $15 million of the same securities under similar terms within 20 business days. Canoo has agreed to file a shelf registration statement for the resale of the underlying shares and will hold a special meeting to seek shareholder approval if the issuance exceeds 19.99% of the common stock outstanding as of the agreement date. The Preferred Stock ranks senior to common stock regarding dividends and liquidation preference, with a dividend rate starting at 7.50% per annum. The Preferred Stock is convertible into common stock at a price subject to certain conditions, and the holders have voting rights equivalent to common stockholders. The Warrants are exercisable immediately upon issuance at a price of $2.2355 and will expire in five years. The securities issued are exempt from registration under the Securities Act of 1933, as amended, and were sold to accredited investors.

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