EV startup Canoo nabs orders for up to 10,000 EVs from Walmart

Canoo, an American automotive startup, has recently shared news about an order received by retail giant Walmart for purchasing around 4,500 EVs, starting with the Lifestyle Delivery Vehicle (LDV).

According to sources, Canoo highlighted some of the conditions of the new agreement inked by Walmart, which included an option for Walmart where it can purchase around 10,000 EVs from Canoo as a part of the strategy of being carbon-free across its deliveries by 2040.

Also, a Warrant Issuance Agreement will be signed under which Walmart gets an option of exercising the acquisition of 61,160,011 shares of fully paid and non-assessable shares of the automaker’s common stock at the cost of $2.15 per share.

For the uninitiated, Walmart utilizes more than 3,800 of its brick-and-mortar locations for fulfilling and delivering online orders. Those locations are said to be within 10 miles of 90% of the US population.

Under this agreement with Walmart, Canoo must withhold any business dealings, no matter what, with Amazon or its subsidiaries.

As the firm has agreed that during the agreement tenure with Walmart, Canoo will not be foraying into any agreement with regards to any services, which includes the design, manufacture, lease, consult, advice, or sale of EVs to, or issue any equity, debt or equity-linked securities of any type, or enter into any agreement to pass on control of the Company to, Amazon.com, Inc., its affiliates or subsidiaries.

As per reports, Canoo is about to launch Lifestyle Vehicle – its first EV which got huge traction from the public during its debut. In fact, a customized version of the Canoo LV was selected for transporting astronauts to the launching pad on the Artemis Missions under a pact recently granted by NASA.

Moreover, Canoo holds several EV ideas on which it has been working and planning to bring into production, including a multi-purpose delivery van and the Canoo Pickup Truck.

Source Credit – https://electrek.co/2022/07/13/canoo-walmart-stock/

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