Canoo Inc. Issues Unsecured Promissory Note to CEO Tony Aquila, Receives Advance

Canoo Inc. (NASDAQ: GOEV) recently disclosed in an 8-K filing with the Securities and Exchange Commission that on October 18, 2024, it issued an Unsecured Grid Promissory Note to AFV Management Advisors, LLC, an entity associated with its Chief Executive Officer and Executive Chair, Mr. Tony Aquila. The initial principal amount of the note was $850,000, with an advance of the same sum received from AFV. The terms of the note allow Canoo to request additional advances, subject to mutual agreement, with interest accruing at a fixed rate of 11% per annum on the unpaid principal amount, payable on a monthly basis. The principal amount, along with any accrued interest, is set to be repaid on October 18, 2025. Canoo retains the option to prepay the note in full or in part without incurring any penalties.

A subsequent development on October 21, 2024, saw Canoo request and receive a second advance, termed as the “Second Advance,” amounting to $270,000 under the same note, bringing the total outstanding principal amount to $1,120,000 as of October 24, 2024. The company and AFV have also agreed to explore negotiating a secured revolving credit facility, with terms and amounts to be determined at a later stage. In the event of default by Canoo on the note, AFV, at its discretion and by written notice to the company, may declare the principal amount, advances, and unpaid interest due and payable immediately.

The issuance of the note was under an exemption from registration as provided by Section 4(a)(2) of the Securities Act and was approved by Canoo’s independent directors as a related party transaction. While the filing provides a comprehensive overview, it notes that details may be found in the note, which is attached as Exhibit 10.1 to the filing.

This announcement cautions readers that forward-looking statements are involved, particularly regarding the intent to establish a secured revolving credit facility and the projected proceeds from the note. It emphasizes that actual results may differ from these statements due to risks and uncertainties. Canoo undertakes not to revise or update these forward-looking statements beyond the date of the report, exercising caution against undue reliance on them.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Canoo’s 8K filing here.

About Canoo

Canoo Inc, a mobility technology company, designs, develops, markets, and manufactures electric vehicles for consumer, commercial fleet, government, and military customers in the United States. the company utilizes its multi-purpose platform architecture, a self-contained, fully functional rolling chassis that directly houses the critical components for operation of an electric vehicle, including its in-house designed proprietary electric drivetrain, battery systems, advanced vehicle control electronics and software, and other critical components.