Electric vehicle manufacturer Electric Last Mile Solutions files for bankruptcy

U.S. commercial electric vehicle maker Electric Last Mile Solutions (ELMS) showcases its all-electric city utility van and commercial truck in Troy, Michigan, U.S., November 19, 2021. REUTERS/Rebecca Cook

June 12 (Reuters) – U.S. commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) (ELMS.O) said on Sunday it planned to file for Chapter 7 bankruptcy, following a review of its products and marketing plans.

The move comes after the Troy, Michigan-based company disclosed a U.S. Securities and Exchange Commission investigation and withdrew all of its previously published March business outlook. Read more

ELMS had said the SEC was investigating issues discussed in previous filings, including disagreements with an accounting firm and compliance with Nasdaq listing rules.

In February, then-Chairman and CEO Jim Taylor and Chairman and Founder Jason Luo resigned, following an investigation into their stock purchases. Read more

“The compound effect of these events, along with an ongoing SEC investigation launched this year, has made it extremely difficult to find a new auditor and secure additional funding,” ELMS said in a statement Sunday. .

The electric vehicle maker previously laid off around 24% of its staff as it focused on its core business. Read more

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

Reporting by Baranjot Kaur in Bengaluru; Editing by Shailesh Kuber

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