Electric Last Mile Solutions (ELMS), founded by the former head of the Hummer brand and one-time CEO of Ford China, will relinquish its assets through a Chapter 7 bankruptcy process.
The decision comes just a year after the company was first publicly listed, and follows the resignations of its founders James Taylor and Jason Lou, as well as an SEC investigation into its accounting processes. The company announced in a statement late Sunday that it would file for bankruptcy.
In the release, interim CEO Shawna McIntyre said the company decided to close because it could not find a viable option for its stockholders, lenders and other interested parties. Its shares fell 55 percent to 23 cents a share in pre-market trading on Monday, Bloomberg reported.
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Electric Last Mile Solutions planned to import electric delivery vehicles from China and assemble them at a former GM plant in Misawaka, Indiana. In June 2021, the company went public with Forum Marger III Corporation, which netted the company about $ 379 million.
In February, just before it announced the merger of a SPAC in December 2020, its founders resigned over allegations of improper stock purchases by ELMS. One week later, its auditor, BDO LLP, also resigned. As such, it has not yet submitted an annual report for 2021, nor a quarterly report for this year, making it inconsistent with Nasdaq listing rules.
The failure to report eventually led to an SEC investigation that the company announced in March 2022. At the same time, it cut its employees by 24 percent, all of which reduced its shares to 93 percent between January 1, 2022 and the end. Of trading last week.
“I am very disappointed by this result because our ELMS team has shown incredible determination to prepare our electric vans to meet the critical needs of clean, connected vehicles that reduce carbon emissions from land transport,” McIntyre said. “Unfortunately, there were many obstacles for us in the short time available to us.”