Canoo finds path to 2023 deliveries with Oklahoma facility lease

EV startup Canoo has introduced a long-term lease of an present manufacturing facility in Oklahoma Metropolis, the place it should function a full and closing meeting line for its flagship Way of life Autos (LVs).

In the present day’s newest entry within the Canoo ($GOEV) saga ought to come as welcomed information for these rooting for the EV startup whose quick, six-year tenure may very well be described as nothing wanting a curler coaster trip of highs and lows.

Throughout its This fall earnings launched final week, Canoo put a $1.5 million bookend on an SEC investigation that alleged that sure former senior executives misled buyers in late 2020 and early 2021 relating to the startup’s income projections.

With that ordeal behind it, Canoo can concentrate on reaching scaled manufacturing of its LVs and Way of life Supply Autos (LDVs) with the $36.6 million remaining money and equivalents it has as of December 31, 2022.

With an ever-shrinking monetary runway in entrance of it, Canoo continues to get scrappy so as to lastly obtain long-promised scaled manufacturing in Oklahoma. In the present day’s information brings the startup a step nearer, because it appears to enter its subsequent section of EV improvement. Right here’s the most recent.

Canoo Oklahoma
Canoo’s incoming battery module facility in Pryor, Oklahoma / Credit score: Canoo

According to news out of the Canoo pressroom immediately, it has signed a long-term lease with AFV Companions to make use of its car manufacturing facility in Oklahoma Metropolis, OK. AFV is led by government chairman and CEO Tony Aquila, who can also be the present chairman and CEO of Canoo. Aquila spoke about Canoo’s progress in The Sooner State:

One of many causes we picked Oklahoma is as a result of it has one of the vital superb workforces in America. They’ve confirmed themselves throughout many industries, together with aviation and aero protection, which is why we’re excited to announce our second manufacturing facility in Oklahoma Metropolis, following our Automobile Module Manufacturing Facility occasion on April 5, in Pryor, OK. I need to thank Mayor Holt and the individuals of Oklahoma Metropolis for welcoming us.

To start, Canoo will occupy 500,000 sq. ft of the 630,000 sq. ft. website which already provides quick access to highway, rail, and waterways, plus loads of room for enlargement on over 120 acres. The newly leased website will assist Canoo make use of over 500 Oklahomans who will function the startup’s full and closing meeting strains, physique store, paint store, high quality management, and car testing/validation.

The lease in Oklahoma Metropolis will be part of a beforehand introduced battery facility about 150 miles northeast in Pryor, OK – a facility that not too long ago missed a building deadline that negated up to $10 million in state incentives.

Beforehand, Aquila stated the newly introduced Oklahoma operation would enable Canoo to get a much-needed jolt to supply electrical autos whereas the manufacturing facility in Pryor is being constructed. In consequence, Canoo continues to zig-zag alongside its path towards scaled manufacturing, however funding stays an enormous consider its success.

The corporate reported a web lack of $80.2 million for This fall 2022, totaling a lack of $487.7 million for the 12 months. Wanting forward, Canoo expects working bills to be between $55 and $70 million with CAPEX between $30-$45 million in Q1 of 2023 because it enters the subsequent stage of improvement. Based on Aquila, the subsequent section will probably be “extra centered on milestones versus event-based or just-in-time” that may “decrease the price, make extra environment friendly use of capital, and permit us to concentrate on long run success.”

With a purpose to keep afloat, CFO Ken Magnet stated Canoo is “exploring quite a few diversified funding sources,” stating that the startup can now file for choices just like the Division of Vitality’s mortgage program, now that the SEC investigation has been resolved. Canoo treks ahead for now.

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