Electric Last Mile shares plunge on SEC probe

Electric Last Mile Solutions

14/03/2022 15:37

March 14 (Reuters) - Electric Last Mile Solutions Inc's  ELMS.O  shares fell
more than 45% on Monday after the electric vehicle startup disclosed a probe by
the U.S. Securities and Exchange Commission and withdrew all its previously
issued business outlook.
    ELMS in a regulatory filing https://www.sec.gov/Archives/edgar/data/0001784168/000121390022011900/ea156743-8k_electric.htm
 after hours on Friday said the SEC was investigating matters discussed in prior
filings including disagreements with an accounting firm and compliance with the
Nasdaq's listing rules.
    The company went public in June 2021 through a merger with blank-check firm
Forum Merger III Corp.
    ELMS and the SEC did not immediately respond to requests for comment.
    EV startup Lucid Group  LCID.O , which too went public through merger with a
special purpose acquisition company, disclosed in December that it had received
a subpoena from the regulator related to an investigation into its blank-check
deal.  urn:newsml:reuters.com:*:nL4N2SR2JG
    ELMS also said on Monday that it expects to make its Urban Delivery electric
van not before the end of 2022, adding that it would not be able to launch its
vehicles without securing additional liquidity.
    The company said it has sufficient cash to continue operations through
between July and September 2022.
    "We would not be enticed to pick some up (shares) until we have more clarity
on customer interest in the vehicle; specifics on funding needs; the SEC
investigation and accounting restatement," D. A. Davidson analyst Michael
Shlisky said.
    The Troy, Michigan-based company's shares fell to a record of $1.04. The
stock has dropped more than 81% since it went public.

 (Reporting by Akash Sriram in Bengaluru; Editing by Maju Samuel)
 ((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))