Canoo Has Entered Into A $45M Convertible Preferred Stock Purchase Agreement By A Foreign Strategic Institutional Investor With The Potential For Upsizing To $150M
Portfolio Pulse from Benzinga Newsdesk
Canoo has entered into a $45M convertible preferred stock purchase agreement with a foreign strategic institutional investor. The agreement could potentially be upsized to $150M. The investor has the right to convert its preferred stock into common stock at a conversion price of 120% of the average closing prices per share of the common stock over the preceding ten trading days. The company also issued warrants to the investor to purchase 22.96 million shares of common stock.
October 02, 2023 | 12:39 pm
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NEUTRAL IMPACT
Canoo's agreement with a foreign strategic institutional investor could potentially increase the company's capital. The investor's ability to convert preferred stock into common stock could dilute the value of existing shares.
The agreement could potentially increase Canoo's capital, which could be positive for the company. However, the investor's ability to convert preferred stock into common stock could dilute the value of existing shares, which could negatively impact the stock price. The overall impact is neutral as the potential benefits and drawbacks balance each other out.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100