Canoo threatened with delisting by Nasdaq


Electric vehicle maker Canoo faces a bumpy road if it intends to fulfill its promise of manufacturing vehicles at a newly-acquired plant in Oklahoma City.

Nasdaq informed Canoo Inc. on March 27, that it might be delisted from the exchange because its closing price for common stock fell below the $1 per share minimum for 30 consecutive business days on March 24.

The warning was issued after Canoo attempted in early February to raise $52.5 million through the sale of 50 million discounted shares. When the sale was announced Feb. 6,  Canoo stock traded at $1.19. Since then, the prices tumbled and on Monday, Canoo shares sold at 53 cents following a 2.02% gain for the day.

At the same time, Richard Kim, described as a prominent cofounder of the company and one of its senior and long-standing employees left the company according to  Fortune. The publication said Kim and a Canoo spokesperson did not respond to a request for a comment.

Exclusive: Canoo's chief design officer Richard Kim leaves EV maker as it faces potential delisting from Nasdaq

Fortune described Kim as the “person behind Canoo’s sleek, futuristic vehicle design that has secured awards.” He was also known for leading exterior design of BMW’s i3 and i-8 electric cars.and fan pages among retail investors.

He is the second executive to leave Canoo in recent weeks. Fortune reported that Steven Monson, director of the applied concepts group, also left the firm.

Word of the delisting warning came as Canoo finalized the $34.27 million acquisition of a major warehouse facility in Oklahoma.

Just last week at a news conference in Tulsa, Canoo CEO Tony Aquila assured economic leaders that jobs will be coming yet this year to the state and production will begin soon. He also said the company has not abandoned its site in Pryor.

The assurances came as Canoo missed a key deadline and missed a chance to collect up to $10 million in incentives from the state.