Arkansas-based Canoo is an EV startup that just seems to be alive. It has sued one of its prominent investors for $ 61 million in an attempt to stay that way. If it wins the suit, the sum will increase significantly. The company says it has cash and cash equivalents in its hands until March 31, 2022.
According to Bloomberg, the lawsuit filed by Kanur for so-called ‘short swing’ gains targeted a Cayman Islands firm called DD Global Holdings and its beneficiary owner, Pak Tam Lee.
DD Global Holdings was one of Canoo’s largest shareholders but due to its affiliation with the Chinese government, they needed a national security agreement to own 10 percent or less of the company by February 28, 2022.
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Canoo believes that despite a number of transactions involving the shares, DD Global Holdings is in breach of that agreement and may block other transactions. Canur stock nearly doubled to less than half of its value in early 2022 after it nearly doubled at the end of last year.
The company said in a recent earnings filing that it lost about 125 125 million in the first few months of 2022 and had only 104.9 million in cash or cash equivalent as of March 31, 2022. The same earnings report had some pretty bad language about the company’s own effectiveness, saying that “there is considerable doubt about the company’s ability to continue as a concern.” It is one thing for a company to demand such things from outside critics or competitors, and quite another for a startup to admit it.
At the same time, Canoo says it has enough capital, about $ 600 million, to start production that was planned for this year. Initially, it planned to build 3,000 to 6,000 cars this year. From what these reports sound like, it would seem that they need to start as soon as possible to address their future concerns.