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Is Canoo Stock a Buy Now?

TheMotleyFool

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Canoo's (NASDAQ: GOEV) stock soared 53% on July 12 after the electric delivery vehicle maker announced a new deal with Walmart (NYSE: WMT).

Walmart agreed to buy 4,500 of Canoo's Lifestyle Delivery Vehicles (LDVs), which are scheduled to arrive next year, with an option to purchase a total of 10,000 vehicles. Walmart was also granted a warrant that gives it an option to buy 61.16 million shares of Canoo, or more than a fifth of the company's outstanding shares, at an exercise price of $2.15 per share.

As part of this deal, Canoo has promised Walmart that it won't supply any vehicles to Amazon. Canoo is also legally obligated to notify Walmart in writing of any other acquisition offers within 72 hours.

Source Fool.com

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