Canoo said Friday night it would “cease operations immediately” after failing to secure sufficient funding to continue the business. Ahead of the announcement, the writing was on the wall for EV startups. The company has lost several executives in recent months and reported to the SEC in November that it had only $700,000 in the bank per person. .
In a press release announcing the application, Canoo said it was unable to raise funds from the Department of Energy’s Loan Programs Office or “foreign capital sources” that were in talks with management. “Given the fact that these efforts have not been successful, our board of directors has made the difficult decision to file for bankruptcy,” it said. Canoe owes hundreds of creditors a total of more than $164 million and has assets of about $126 million. Tech Crunch. Canoo’s assets will be liquidated and the proceeds distributed to creditors, according to documents filed in Delaware. “We are truly disappointed that things have turned out the way they have,” CEO Tony Aquila said in a statement.
Canoo has built several electric vans for NASA and a prototype for the U.S. Army and has contracts for large fleets from the likes of the USPS and Walmart, but only a handful of vans appear to have materialized.
