Canoo's CEO, Anthony Aquila, has proposed to acquire nearly all assets of the bankrupt electric vehicle startup for $4 million in cash. This move comes shortly after Canoo's Chapter 7 bankruptcy filing. The acquisition will absolve an $11 million debt owed to Aquila's financial firm. The bankruptcy trustee supports this sale, citing a lack of financing for EVs and market saturation with undervalued assets. The situation highlights the precarious state of the EV industry, where many startups have struggled to sustain operations amidst financial difficulties.
The best course of action would be to proceed with the sale to Aquila, as current market conditions favor a quick asset acquisition.
This sale proposal comes just six weeks after Canoo filed for bankruptcy, reflecting the challenging landscape for EV startups.
Canoo has around $145 million in assets and $175 million in liabilities, revealing a significant financial imbalance prior to bankruptcy.
Aquila's offer could potentially remove $11 million in debt, indicating a strategic maneuver to stabilize his new venture.
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