EUGENE, Ore. --- Electric vehicle company Arcimoto is facing some serious financial issues, according to documents filed to the Security Exchange Commission.
As a result of those challenges, they recently halted production at their newly-opened Eugene factory. Without additional funding, it could become a permanent closure.
Arcimoto recently closed a public offering, in which they offered $12 million in additional shares. On Tuesday, each share was valued at more than $6 each. On Friday, the value dropped down to just over $2.
At the peak, each share was worth over $600. Leaders within the company said the offering was a method to pay back some of the money they owe, and also raise some more capital for working funds and general corporate purposes.
The following is an excerpt from the documentation, which explains the risks for buyers associated with the offering:
“We may not be able to obtain adequate financing to continue our operations.
The design, manufacture, sale and servicing of vehicles is a capital-intensive business. We have previously raised funds through equity investment and convertible and non-convertible notes to meet our cash needs, but there is no guarantee that we will be able to raise enough additional capital in the short term to meet our ongoing cash requirements. Our need to raise additional funds to sustain operations and reach our vehicle production goals is dependent on how quickly we can secure financing and reduce the cost of our vehicles. We may raise additional funds through the issuance of equity, equity-related, or debt securities or through obtaining credit from government or financial institutions. We cannot assure anyone that we will be able to raise additional funds when needed. We cannot be certain that additional funds will be available to us on favorable terms when required, or at all. If we cannot raise additional funds when we need them, we will be unable to continue operations.
We have halted our production of vehicles and will require substantial additional funding to resume production, which may not be available to us on acceptable terms, or at all, and, if not so available, we will be required to cease our operations and/or seek bankruptcy protection.”
To clarify, this doesn’t mean they will go out of business for certain, or that they have filed for bankruptcy. As of Friday afternoon, their website appears to be fully operational, with options to purchase their staple “Fun Utility Vehicle.”
KEZI 9 News reached out to the Arcimoto marketing team for more information and hasn’t received a call back.