The American manufacturer of vans and electric utility trucks Electric Last Mile Solutions (ELMS), targeted by an investigation by the Wall Street regulator, has announced that it intends to declare bankruptcy, less than a year following its IPO.
ELMS wishes to file for bankruptcy under Chapter 7 of the United States bankruptcy law, which corresponds to a liquidation and indicates a probably permanent closure.
In February, the company’s former chief executive, Jim Taylor, and founder and chairman of the board, Jason Luo, resigned following an internal investigation into the terms under which those executives bought actions.
ELMS then appointed board member Shauna McIntyre as interim boss, tasked with reviewing the company’s products and marketing plans.
The company had been forced to withdraw its financial projections and admitted that its previous financial reports were unreliable.
The Nasdaq stock market platform, where ELMS is listed, gave the manufacturer formal notice in April and then in May for not having filed with the American stock market policeman, the SEC, its results for the financial year 2021 and for the first quarter of 2022.
“The combined effect of these events, along with an ongoing SEC investigation initiated this year, has severely limited our ability to find a new controller and attract new funds,” ELMS said in a statement. Sunday night.
“Unfortunately, there were too many obstacles to overcome in the short time available to us,” said Ms. McIntyre.
Listed on the New York market since the end of June 2021, the action of the manufacturer of electric vehicles has continued to tumble.
It was trading Monday, before the opening of Wall Street, at 25 cents, falling nearly 51%.
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