Electric Last Mile Solutions files for bankruptcy liquidation

Battery-electric powered shipping and delivery van startup Electrical Very last Mile Remedies (ELMS) has filed for personal bankruptcy liquidation, ending a very long slide that included insider buying and selling, an SEC investigation and a bear market place that is pummeling recently public transportation businesses.

“Unfortunately, there have been much too numerous road blocks for us to get over in the short sum of time obtainable to us,” Shauna McIntyre, interim CEO and president, claimed in a push launch.

In an 8-K submitting Sunday with the Securities and Exchange Commission, ELMS said its board and outside the house advisers identified a Chapter 7 liquidation filing was the ideal alternative just after the company was not able to entice new financial investment.

ELMS shares tumble

ELMS stock tumbled 61.59% on Monday to shut at 20 cents a share on the Nasdaq. The trade advised the organization on Friday it had 180 days to get its inventory selling price above $1 a share or experience delisting. Shares fell an supplemental 2.76% soon after hours to 19 cents.

ELMS went general public a 12 months in the past this thirty day period following a December 2020 merger with Forum Merger III Corp., The deal was valued at $1.4 billion. ELMS been given $379 million in gross proceeds when the business mix shut on June 28.

Monday was a horrific working day in general for electric powered and autonomous transportation organizations that became general public via special purpose acquisition corporations developed to merge with youthful businesses and get them public.

Embark Technologies (NASDAQ: EMBK), the maker of autonomous trucking software package, fell 15.79% to 64 cents a share.

Nikola Corp., (NASDAQ: NKLA) one particular of the early SPAC mergers, which has fought by means of a raft of problems and agreed to fork out the SEC $125 million in a great around fraud allegations in opposition to its founder, misplaced 13.41% to close at $5.23, much less than 50 cents increased than its 52-week very low.

Raft of woes

ELMS was currently reeling. Previous 7 days, it claimed that former CEO James Taylor, a veteran automotive government who co-established the corporation, experienced unsuccessful to repay shares in the enterprise that an inner investigation observed had been procured via insider buying and selling.

The ELMS business plan involved developing Course 1 final-mile electric shipping vans with imported bodies from China that would be married to electric powered chassis at a former General Motors plant in Mishawaka, Indiana.

The operator of the Mishawaka plant agreed to slice home loan payments on the plant for four months while the corporation tried using to raise new funding. 

Board users tender resignations

“For the earlier many months, the ELMS board and the new ELMS leadership workforce have labored nonstop to handle legacy monetary, governance and operational issues at the company, and enormous development was created, which includes in direction of motor vehicle certification,” explained Brian Krzanich, ELMS non-executive board chair and previous CEO of Intel.

“Therefore, it’s extremely discouraging that we need to acquire this route, but it was the only responsible upcoming stage for our shareholders, companions, collectors and staff members.”

The organization is finishing preparations for the Chapter 7 case, which will be managed by a trustee. McIntyre, Krzanich and Richard N. Peretz, who retired in 2020 as senior vice president, chief monetary officer and treasurer of United Parcel Assistance, tendered their resignation as board customers effective when the bankruptcy trustee normally takes control of ELMS’ affairs.

Is very last-mile startup ELMS on its final legs?

Nightmare on ELMS Avenue: Electrical Last Mile Options faces SEC probe

Yet another SPAC scandal: ELMS’ top leaders resign more than discounted stock buys

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