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SEC fines Canoo $1.5M, bans former execs from board roles

After two years of “materially inaccurate” projections for the company's revenue, the SEC is penalizing the startup as well as banning its former executives.

ARKANSAS, USA — Electric vehicle startup Canoo Inc. (Nasdaq: GOEV), which has plans to move its headquarters to Bentonville, has agreed to pay a $1.5 million civil penalty over misleading revenue projections for the past two years.

The U.S. Securities & Exchange Commission also temporarily banned former CEO Ulrich Kranz and former CFO Paul Balciunas from holding board positions at a publicly traded companies.

Regulators said the company's revenue projections of $120 million in 2021 and $250 million in 2022 were "materially inaccurate." Kranz and Balciunas allegedly based those numbers on projects that were no longer active or feasible, such as the company's provision of engineering services to other companies. 

To read more on Canoo, our content partner Arkansas Business has the full article here.   

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