TROY,
Mich., June 12, 2022 /PRNewswire/ -- Electric
Last Mile Solutions, Inc. (NASDAQ: ELMS) ("ELMS" or "the Company"),
a pure-play commercial electric vehicle ("EV") company that has
been focused on redefining productivity for the last
mile, today announced the Company plans to file for Chapter 7
bankruptcy.
In February 2022, following the
resignations of Jim Taylor, the
Company's former Chief Executive Officer, and Jason Luo, the Company's founder and former
Executive Chairman, the Company appointed Board member Shauna McIntyre as interim CEO and President, in
part because of her considerable automotive experience.
The ELMS Board and the new leadership team under Ms. McIntyre
launched a comprehensive review of the company's products and
commercialization plans, instilled a culture of safety and focused
the workforce on producing quality vehicles. This process
included assessing the Company's planned product offerings,
production plans, and certification processes, including the
feasibility of meeting previously announced targets.
Based on the findings of the same Board-initiated investigation
that led to the resignations of Mr. Taylor and Mr. 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.
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."
About Electric Last Mile Solutions, Inc.
Electric Last Mile Solutions, Inc. (Nasdaq: ELMS) has been focused
on defining a new era in which commercial vehicles run clean as
connected and customized solutions that make businesses more
efficient and profitable. ELMS' first vehicle, the Urban Delivery,
was anticipated to be the first Class 1 commercial electric vehicle
in the U.S. market. For more information, please
visit www.electriclastmile.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. The Company's actual results may
differ from its expectations, estimates and projections and
consequently, you should not rely on these forward-looking
statements as predictions of future events. Words such as "expect,"
"estimate," "project," "budget," "forecast," "anticipate,"
"intend," "plan," "may," "will," "could," "should," "believes,"
"predicts," "potential," "continue," and similar expressions are
intended to identify such forward-looking statements. These
forward-looking statements include, without limitation, the
Company's expectations with respect to the timing of a potential
Chapter 7 filing and the potential implications for the Company's
stockholders, stakeholders, creditors, and other interested
parties. These forward-looking statements involve significant risks
and uncertainties that could cause the actual results to differ
materially from the expected results. Most of these factors are
outside the Company's control and are difficult to predict. Factors
that may cause such differences include, but are not limited to,the
risks and uncertainties described in the "Risk Factors" section of
the Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2021 and in the Company's
future filings with the Securities and Exchange Commission. Some of
these risks and uncertainties may in the future be amplified by the
COVID-19 outbreak and there may be additional risks that the
Company considers immaterial or which are unknown. The Company
cautions that the foregoing list of factors is not exclusive. The
Company cautions readers not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
The Company does not undertake or accept any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements to reflect any change in its
expectations or any change in events, conditions or circumstances
on which any such statement is based.
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SOURCE Electric Last Mile Solutions, Inc.