Canoo said Friday evening that it had and will “cease operations with immediate effect”, after failing to secure sufficient funding to continue operations. The writing was on the wall for the EV startup before the announcement; The company has lost several executives in recent months and told the SEC in November that it had only $700,000 in the bank, per .
In a press release announcing the filing, Canoo said it was unable to obtain financing from the Department of Energy’s Loan Program Office or from “foreign capital sources” with which executives were in talks. “In light of the failure of these efforts, the Council has made the difficult decision to file for insolvency,” he said. Canoo owes a total of more than $164 million to hundreds of creditors and has about $126 million in assets, according to TechCrunch. As part of the Delaware filing, Canoo’s assets will be liquidated and the proceeds distributed to its creditors. In a statement, CEO Tony Aquila said: “We are truly disappointed that things have unfolded as they have. »
Canoo has made a few electric vans for NASA and a prototype for the US military, and has deals for larger fleets with companies like USPS and Walmart, but only a small number of its vans appear to have materialized.
