Canoo is the latest EV startup in recent months to announce plans to go public.
The California company will follow in the footsteps of fellow EV startups Nikola, Lordstown Motors, and Fisker by entering in a so-called “reverse merger” with a special purpose acquisition company whose shares are already publicly traded, in this case Hennessy Capital Acquisition Corp.
The deal is expected to close in the fourth quarter of 2020, after which Canoo will be listed on the Nasdaq under the ticker symbol “CNOO.”
If successful, the new public company would be valued at approximately $2.4 billion. Canoo would also receive about $600 million in funding.
Canoo electric car
Canoo was established in 2018 by several former Faraday Future executives. The company is based in Los Angeles and already has close to 300 staff.
Canoo has developed a modular EV platform that will be initially used in a small but spacious minivan also called Canoo. The minivan is expected to launch in 2022 (up from 2021 previously). It will be followed by a last-mile delivery vehicle and a sports car. Canoo is also working with Hyundai to develop a modular platform for the Korean automaker's future EVs.
What will set Canoo apart from other EV startups is a subscription business model. Customers will pay a set monthly fee that covers all costs, including registration, maintenance, insurance, and charging. Those subscribers won't own their vehicles, but they will also be able to give those vehicles back whenever they want.
“Today marks an important milestone of Canoo’s effort to reinvent the development, production and go-to-market model of the electric vehicle industry,” CEO and co-founder Ulrich Kranz said in a statement Tuesday. “ Our technology allows for rapid and cost-effective vehicle development through the world’s flattest skateboard architecture, and we believe our subscription model will transform the consumer ownership experience.”