Shares of electric vehicle (EV) start-up Canoo (NASDAQ:GOEV) stock are down by over 10% after the company announced a $52.5 million registered direct offering. As part of the offering, warrants and 50 million shares of GOEV will be sold to undisclosed “certain institutional investors” at a combined price of $1.05 per share. The warrants will provide the investors with an option to purchase up to 50 million more additional shares. Furthermore, the warrants will have an exercise price of $1.30 and will be exercisable six months after the issuance with an expiration date of five years from the initial exercise date.
The offering is expected to close on Feb. 8 and will be subject to customary closing conditions. The proceeds will be used for “general working capital purposes.”
GOEV closed at $1.25 last Friday, so the $1.05 price offers a significant 16% discount. That has contributed to shares of the company being down 12% today. Back in November, the electric vehicle (EV) company warned that it was low on cash and would soon raise equity via new shares. As of Q3, Canoo had $6.8 million of cash on hand.
There are currently 356 million shares of GOEV stock outstanding. As part of the offering, between 50 and 100 million new shares will be issued, signaling dilution for existing shareholders.
5 Investors Betting Big on GOEV Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, a total of 144 13F filers disclosed ownership of GOEV, an increase of one filer from the previous quarter. Meanwhile, the institutional put/call ratio sits at 0.44, down from 0.47. That’s equivalent to 2.66 million puts and 6.01 million calls, implying a bullish options stance.
With that in mind, let’s take a look at the largest shareholders of Canoo:
- Tony Aquila, CEO: 62.47 million shares. Aquila’s stake is accurate as of Jan. 4.
- YA II PN: 38.29 million shares. YA acquired 8.39 million shares during Q4.
- Vanguard: 16.77 million shares. Vanguard acquired 3.09 million shares during Q3.
- BlackRock (NYSE:BLK): 9.78 million shares. BlackRock acquired 1.90 million shares during Q3.
- Invesco (NYSE:IVZ): 7.07 million shares. Invesco acquired 108,604 shares during Q3.
Please note that this list only includes investors who have filed at least a Q3 position update. For example, DD Global Holdings owns 26.88 million shares, although that figure is only accurate as of July 2022.
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.
