EV maker ELMS' CEO, chairman resign after probe into their share purchases

Electric Last Mile Solutions

01/02/2022 23:18

Feb 1 (Reuters) - Electric Last Mile Solutions Inc  ELMS.O ,
a maker of battery-powered delivery vehicles, said on Tuesday
that its top two executives had resigned following an
investigation into their share purchases, sending its shares
tumbling 24%.
    The company said the investigation by a special committee of
the board showed that shortly before it announced an agreement
to go public in December 2020, some executives, including Chief
Executive James Taylor and Chairman Jason Luo, purchased equity
at substantial discounts to market value without obtaining an
independent valuation.
    Board member Shauna McIntyre, a former chief of staff at
Google's consumer electronics division, was named interim CEO,
while former Intel chief Brian Krzanich was named non-executive
chairman.
    The Michigan-based electric vehicle maker also said its
financial statements as of Dec. 31, 2020 and the nine months
ended Sept. 30, 2021 would be restated.

 (Reporting by Raghavi Kasa in Bengaluru; Editing by Anil
D'Silva)
 ((Raghavi.Kasa@thomsonreuters.com;))