EV Startup Faces SEC Investigation
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.
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