Canoo said Friday night that he had started and would “stop working immediately,” after failing to secure enough funding to continue. The writing was on the wall for the EV launch leading up to the announcement; the company has lost several executives in recent months, and reported to the SEC in November that it had just $700,000 in the bank, .
In a press conference announcing the application, Canoo said he was unable to obtain funding from the Department of Energy’s Office of Loan Program or from “external sources of funding” that the administration was negotiating with. “Because these efforts were unsuccessful, the Board made the difficult decision to apply for a deficiency,” he said. Canoo owes hundreds of creditors more than $164 million, and has assets of about $126 million, according to TechCrunch. Under the Delaware filing, Canoo’s assets will be liquidated and the proceeds will be distributed to its creditors. In a statement, CEO Tony Aquila said, “We are truly disappointed that things turned out the way they did.”
Canoo made a few electric vans for NASA and a prototype for the US Army, and had deals with major shipping companies like the USPS and Walmart, but only a small number of its vans appear to have ever been in service.
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