The electric vehicle business that just won a NASA deal to build a new version of the “Astrovan” to take astronauts of Artemis to the launch pad did warn on May 10 that it may soon exhaust its cash.
Canoo Technologies filed a “going concern” warning to the SEC (Securities and Exchange Commission) on May 10 due to ongoing losses. The corporation lost $125.4 million during the first quarter and ended with $104.9 million in cash on hand. “We feel substantial doubt exists regarding the Company’s ability to operate as a going concern for the next twelve months,” Canoo said in the filing.
Canoo was selected by NASA in the month of March for the Artemis Crew Transportation Vehicles deal, which will deliver electric vehicles to carry astronauts from the Kennedy Space Center facility where they gear up for their flights to Launch Complex 39B. The vehicles will take the place of the “Astrovan,” an Airstream motor home that was used to carry NASA astronauts for the majority of the shuttle program. The contract requires the utilization of zero-emission automobiles, citing an executive order signed in August 2021 encouraging the usage of such vehicles.
The vehicles, which NASA described as “futuristic transportation with pod-shaped exteriors” in an April 13 statement, are functionally electric vans able to carry 8 individuals, including 4 astronauts in spacesuits. Canoo is going to deliver 3 of such vehicles to the NASA agency by June of 2023 as part of the contract. The contract figure was not included in the NASA release, although a procurement notice issued on March 31 stated that it was valued at $147,855.
Canoo had only delivered a few automobiles to this point. Only 39 of the Gamma vehicles, on which the vehicles of NASA are based, have been manufactured, according to the company’s results report. The company states it will begin full-scale manufacturing of its vehicles later this year, pending the necessary finance to stay in business.
Canoo executives confirmed the going worry warning on a May 10 earnings call, but claimed they were attempting to obtain approximately $600 million in the new funding. Aquila Family Ventures, an existing shareholder, would contribute $50 million, while Yorkville Advisors, which is a hedge fund, would contribute $250 million. Canoo has also submitted a registration statement for the sale of around $300 million in stock. On the call, Canoo CEO Tony Aquila stated that the $50 million investment would conclude this week. He stated that the Yorkville deal would be ready in “a couple of weeks.”