EV maker Electric Last Mile Solutions files for bankruptcy

Electric Last Mile Solutions

13/06/2022 03:21

June 12 (Reuters) - U.S. commercial electric vehicle maker
Electric Last Mile Solutions Inc (ELMS)  ELMS.O  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.  urn:newsml:reuters.com:*: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.  urn:newsml:reuters.com:*: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.  urn:newsml:reuters.com:*: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;))