Days after sending dozens of its employees on leave without pay, EV startup Canoo told its remaining employees they will be on “mandatory unpaid leave” until at least the end of the year. techcrunch informed Friday, A company email seen by the outlet said employees will be locked out of Canoo's system by the end of Friday, and their benefits will continue until the end of the month.
The report follows Canoo Announcement Last week it was idling its Oklahoma factories and furloughing employees while it worked “to finalize the capital needed to further expand its operations.” As techcrunch Notes, the company reported that only $700,000 was left in the bank last month.
Also on Friday the company announced 20 for 1 reverse stock split, effective December 24. Canoo says the goal of the consolidation is to keep its stock listed on the Nasdaq exchange and attract “a broader group of institutional and retail investors.”
Canoo was founded in 2017 to sell electric vans and trucks to adventure-seeking customers, but it has mostly built vehicles only for the US government. As The VergeAndrew Hawkins wrote last yearAnalysts have warned about the risk of it going bankrupt as it is on the verge of running out of cash from 2022 onwards. CANU has since lost a steady stream of officials, including all its founders And, recently, this CFO and General Counsel,