GOEV - Why did Canoo stock drop today? New shares were issued by the EV startup

Canoo ( NASDAQ: GOEV ) fell 12.40% on Monday after the electric vehicle maker announced the issuance of 50M shares of the company's common stock together with warrants to purchase up to 50M shares at a combined purchase price of $1.05 per share.

The gross proceeds from the offering are expected to be approximately $52.5M. The five-year warrants having an exercise price of $1.30 per share will be exercisable beginning six months following the date of issuance. The offering is expected to close on or about February 8. Canoo ( GOEV ) plans to use theproceeds from the offering for general working capital purposes.

Trading volume on GOEV was over 80K shares vs. normal daily activity of around 11.5M shares. Short interest on GOEV is at 23.75% of total float.

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