Eugene-based electrical automobile maker Arcimoto is suspending operations and in search of capital | Tech Guess

Arcimoto has stopped manufacturing. The Eugene producer, identified for making three-wheeled electrical vehicles, notified federal authorities of the transfer in a Jan. 17 submitting with the U.S. Securities and Alternate Fee. In that assertion, the corporate stated it had halted manufacturing of its Enjoyable Utility Automobiles model and would want “important extra funding” to proceed manufacturing.

The corporate, which is publicly traded on the NASDAQ, introduced a inventory providing to boost cash. Shares of Arcimoto (FUV) traded all the way down to $2.39 as of three:00 PM PT on Wednesday. That is down from $6.12 on Tuesday and down 98.2% from its excessive practically two years in the past.

Arcimoto additionally positioned a number of million shares of its widespread inventory with the aim of “whole gross proceeds of roughly $12 million,” the corporate stated in an announcement. The providing closes Friday, with a disclaimer that modifications within the business, competitors and Arcimoto’s skill to acquire working capital financing might have an effect on the resale worth of the shares.

In an announcement launched by the corporate on Wednesday, Arcimoto stated it intends to make use of the cash it raises to “fund working capital and different basic company functions.”

It is a dramatic about-face for the corporate, which opened a brand new 250,000-square-foot manufacturing facility in February 2022. In remarks on the facility’s opening, Arcimoto founder Mark Frohnmaier highlighted the corporate’s dramatic development so far.

“Arcimoto has greater than doubled annual manufacturing in 2020 and greater than tripled annual manufacturing in 2021,” Frohnmeier stated on the time.

Nevertheless, after peaking in March 2021 at $343 per share, in keeping with Barron’s, Arcimoto’s inventory worth has steadily declined. Frohnmeier was eliminated as CEO in August and reassigned to the brand new place of “Chief Imaginative and prescient Officer” after he was arrested for drunken driving.

The Portland Enterprise Journal notes that Arcimoto misplaced $17 million within the quarter ending Sept. 30.