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EV maker Electric Last Mile Solutions files for bankruptcy

reuters.com · 06/12/2022 22:21
EV maker Electric Last Mile Solutions files for bankruptcy

- U.S. commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) ELMS said on Sunday it is planning to file for Chapter 7 bankruptcy, after a review of its products and commercialization plans.

The move comes after the Troy, Michigan-based company disclosed a probe by the U.S. Securities and Exchange Commission and withdrew all its previously issued business outlook in March. nL3N2VH30A

ELMS had said the SEC was investigating matters discussed in prior filings including disagreements with an accounting firm and compliance with the Nasdaq's listing rules.

In February, the then Chief Executive Officer Jim Taylor and Chairman and founder Jason Luo resigned, following an investigation into their share purchases. nL4N2UC3FA

"The compound effect of these events, along with a pending SEC investigation initiated this year, made it extremely challenging to secure a new auditor and attract additional funding," ELMS said in a statement on Sunday.

The EV maker previously laid off about 24% of its staff as it focussed on its core business. nL3N2V7498

The company went public in June 2021 through a merger with blank-check firm Forum Merger III Corp.

(Reporting by Baranjot Kaur in Bengaluru; Editing by Shailesh Kuber)

((Baranjot.Kaur@thomsonreuters.com; +91 86990 46242;))