Shares of Canoo (NASDAQ:GOEV) stock are in full focus following a massive insider purchase from CEO Tony Aquila and the delivery of a Light Tactical Vehicle (LTV) to the U.S. Army for analysis and demonstration. The vehicle was delivered as part of a contract awarded last July.
The LTV seeks to operate in rough terrains with an emphasis on passenger and battery safety. Furthermore, the vehicle is designed with carbon kevlar and can be converted into a flatbed truck from a pickup truck. It also boasts a proprietary all-wheel drive system with up to 600 horsepower.
Aquila added: “The LTV is another milestone proving the power of our technology and how it can be used, even in tactical situations. This is a winning algorithm for our customers and company.”
More specifications of the LTV will be revealed once production is initiated. Still, Aquila is clearly confident in the future of GOEV stock, as evidenced by his recent insider purchase.
GOEV Stock: Aquila Purchases 9 Million Shares
On Nov. 23, Aquila purchased a whopping 9 million shares, priced at $1.11 each, as part of a common stock subscription agreement established on Nov. 9. This resulted in an aggregate purchase price of $10 million. 4.5 million shares were acquired directly by Aquila, while the remaining 4.5 million shares were acquired by AFV Partners, a limited liability company (LLC) “managed by entities affiliated with” Aquila. After the transaction, Aquila directly owns 7.24 million shares and indirectly owns 55.73 million shares through AFV.
This was the third time that Aquila purchased shares this year. On Aug. 12, he purchased 200,000 shares at an average price of $3.98 per share. Then, on Sept. 13, he purchased another 200,000 shares at an average price of $2.57 per share. Both purchases were enacted via a prearranged 10b5-1 plan established on June 15.
In the past 12 months, Canoo insiders acquired 23.11 million shares and sold 23.53 million shares. That adds up to a total net activity of 422,168 shares sold. The shares sold figure should be taken with a grain of salt, as it includes shares sold to cover tax withholding obligations for vested restricted stock units (RSUs).
Canoo is still massively unprofitable, reporting a net loss of $117.7 million during Q3. A successful test run of the LTV with the U.S. Army and further orders are key for the future of the company.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.