EV Startup Faces SEC Investigation

Truman Slate

Electric motor vehicle startup Canoo is currently being investigated by the U.S. Securities and Exchange Commission, the electric powered motor vehicle startup’s CEO told analysts in a write-up-earnings contact.

What Happened: The Los Angeles, California-based company, which went community through a reverse merger with distinctive function acquisition company Hennessy Money Acquisition, explained the SEC has informed the company the existing investigation is a fact-locating inquiry.

In a separate filing, the company uncovered the investigation covers the merger company HCAC’s IPO, functions, company product, revenues, earnings system, purchaser agreements, earnings, and other linked topics, together with a string of executive departures at the company.

Canoo’s Multi-Function Delivery Vehicle

Canoo explained it learned of the investigation on April 29 and is cooperating with the investigation.

Why It Matters: The SEC investigation follows a string of executive departures and the loss of a essential automotive deal. The electric powered motor vehicle startup very last month named a person of its greatest buyers and executive chairman Tony Aquila to the role of main executive. Aquila changed co-founder Ulrich Kranz, who resigned efficient April thirty.

[Renato Giger was named interim CFO in March, as Paul Balciunas stepped down. Giger was previously the main fiscal working officer at AFV Associates.]

Canoo had very last yr explained it was in talks with trip-sharing company Uber Systems and other people to offer its electric powered automobiles.

The company’s 1st-quarter loss narrowed to $15.2 million as opposed to a loss of $thirty.9 million a yr ago.

This tale initially appeared on Benzinga. © 2021 Benzinga.com.

Benzinga does not give investment decision tips. All rights reserved.

Benzinga, Canoo, electric powered automobiles, Hennessy Money Acquisition Corp., US Securities and Exchange Commission

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