The electric vehicle maker Electric Last Mile Solutions submitted on Tuesday evening a SEC filing for Chapter 7 bankruptcy. On the note released, the company added that continues to work “aggressively on raising new sources of capital, while working closely with advisors to assess and improve its liquidity position.”
On Wednesday, the stock closed at $0.1408 and is now trading at $0.4339, representing a 210% increase from yesterday’s closing price. As of 12:01 eastern time, Electric Last Mile Solutions stock is the most traded with nearly 120 million shares of volume. Despite the 210% jump, the share price is still down 93.88% year-to-date and down 40.22% in the last 30 days.
Last February, the company’s former CEO Jim Taylor and Jason Luo, the company’s founder and former executive chairman left ELMS andShauna McIntyre was appointed as interim CEO and president.
“Based on the findings of the same board-initiated investigation that led to the resignations of Taylor and Luo, ELMS was forced to withdraw financial guidance and declare the company’s past financial statements unreliable. 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”, the company stated.
Ultimately, the board determined, following a review with the assistance of the company’s outside advisors, and upon the recommendation of the company’s management, that it is in the best interest of the company and the company’s stockholders, stakeholders, creditors, and other interested parties to file for Chapter 7 relief.
ELMS added “Yet the Company continued to work aggressively on raising new sources of capital, while working closely with advisors to assess and improve its liquidity position. Ultimately, the Board determined, following a comprehensive review with the assistance of the Company’s outside advisors, and upon the recommendation of the Company’s management, that it is in the best interest of the Company and the Company’s stockholders, stakeholders, creditors, and other interested parties to file for Chapter 7 relief”.
“I’m very disappointed by this outcome because our ELMS team demonstrated incredible determination to get our electric vans ready to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation,” said Ms. McIntyre. “Unfortunately, there were too many obstacles for us to overcome in the short amount of time available to us. I could not be prouder of what our team has been able to accomplish under very challenging circumstances. This is a viable and essential technology, and I am confident that many of our talented employees will play a future role in this energy transition effort.”
“For the past several months, the ELMS board and the new ELMS leadership team have worked nonstop to address legacy financial, governance and operational matters at the Company, and enormous progress was made, including towards vehicle certification” said Brian Krzanich, ELMS Board Chair and former CEO of Intel. “Therefore, it’s extremely frustrating that we must take this route, but it was the only responsible next step for our shareholders, partners, creditors, and employees.”