Canoo (NASDAQ: GOEV) shares dropped more than 3% on Friday after signing a sixth supplemental agreement with Yorkville linked to the Pre-Paid Advance Agreement.
Canoo (GOEV) and Yorkville have signed a sixth supplemental agreement related to the Pre-Paid Advance Agreement.
Under this agreement, Yorkville has committed to providing a $17,500,000 ($17.50 million) advance to Canoo while waiving specific terms and conditions detailed in the Power Purchase Agreement (PPA) for such Supplemental Advance.
The company will get about $16,450,000 ($16.45 million) in net proceeds from the Sixth Supplemental Advance, factoring in the commitment fee and the purchase price discount stated in the PPA.
The Sixth Supplemental Agreement provides that solely concerning the Sixth Supplemental Advance, the Purchase Price (as such term is used in the PPA) will be equal to the lower of (a) $0.24 per share or (b) 95% of the lowest daily VWAP during five Trading Days immediately preceding each Purchase Notice Date (as such term is used in the PPA), but not lower than the Floor Price (as defined in the PPA). In addition, the company has committed to paying Yorkville a commitment fee of $875,000 in connection with the Sixth Supplemental Agreement. This commitment fee will be subtracted from the proceeds of the Sixth Supplemental Advance.
Canoo (NASDAQ: GOEV) initiated a Pre-Paid Advance Agreement (PPA) with YA II PN, Ltd. (Yorkville) on July 20, 2022. As per the provisions of the PPA, the company has the authority to seek cash advances from Yorkville, with the maximum amount set at $50,000,000 ($50 million). The agreement allows for a greater amount subject to mutual agreement between the parties.
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