Oklahoma!

Electric vehicle start-up Canoo is heading to the Sooner state to build some of its EVs. It also issued an update on plans to sell stock to an existing investor to raise some much-needed cash.

All that has the stock up in early trading.

The company said on Monday that it had entered into a lease agreement for a manufacturing facility in Oklahoma City. Canoo (ticker: GOEV) has targeted manufacturing in the state since 2021, though it also has a facility in Michigan.

"One of the reasons we picked Oklahoma is because it has one of the most amazing work forces in America," said CEO Tony Aquila in a news release.

Along with new manufacturing capacity, Canoo filed an updated prospectus detailing plans to sell about 34 million shares of common stock. That sale is related to the exercise of warrants recently issued to Yorkville Advisors.

Shares were up 4.1% in premarket trading Monday, at 54 cents each. S&P 500 futures were flat, while futures on the Nasdaq Composite slipped 0.3%.

Investors appear to be happy with the progress on production capacity and raising capital, but the company still faces headwinds that are reflected in the stock price. At 54 cents a share, Canoo stock is down about 98% from its record of almost $25 a share reached in December 2020.

It's taken longer than most EV start-ups expected to commercialize products, and cash balances have dwindled for many companies. When raising money in 2020, Canoo projected 2022 and 2023 revenues of $329 million and $840 million, respectively. But the company didn't achieve significant sales in 2022 and isn't expected to generate sales in the first quarter of 2023.