The Securities and Exchange Commission has only just launched an investigation into the public launch of electric vehicles in Canoo, CEO Tony Aquila said in a conference call on Monday.
The probe is broad, although the start-up legislation stated in the regulatory application that it has been described by the SEC as a “search for information” and that the agency has not yet decided whether anyone has broken the law. It covers the special purpose vehicle (or SPAC) of the Canon merger and its “operations, business model, revenue, results strategy, customer agreements, revenue and other related matters, and recent departures of some company officials. ”
Canoo says it intends to supply all requested materials and cooperate fully. Aquila refused to answer questions about the probe during the call.
The Canoo is one of numerous electric vehicles unveiled by merging with SPAC over the past year. These mergers offered a new kind of startup public announcement rather than a traditional IPO. But because these mergers are regulated differently, it gave startups more leeway in business forecasts. In April, the SEC announced it was doing so begins to take a closer look at this contradiction ensure that investors are not misled. Canoo received a notification from the SEC on April 29th.
Many other newly public EV startups are under pressure from the SEC and various regulators. Lordstown Motors announced in March that the SEC was investigating led to the launch of electric pallet trucks to mislead investors. Nikola will also have to investigate the start of hydrogen shipments Ministry of Justice after getting caught lying to investors.
Aquila stressed the requirement that Canoo has so far been too conservative and predicts that the start-up will be cautious when announcing orders to deposit deposits from its vehicles. startup began to take deposits for an electric car, a pick-up car and a transport vehicle earlier on Monday.