After assessing its products and commercialization plans against a global supply chain shortage of parts, labor, and more, Electric Last Mile Solutions (ELMS) announced it plans to file for Chapter 7 bankruptcy.
The announcement comes shortly after ELMS disclosed a probe from the U.S. Securities and Exchange Commission and withdrew its most recent business outlook, which was issued in March. The SEC was investigating matters brought up in prior filings, including complying with NASDAQ's listing rules and ongoing disagreements with an accounting firm.
Both CEO Jim Taylor and Chairman/Founder Jason Luo resigned in February, signaling a grim road ahead in lieu of an investigation into their respective share purchases.
ELMS issued a brief statement, saying, "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."
ELMS recently laid off about 24% of its staff after going public in June 2021 through a merger with blank-check firm Forum Merger III Corp.
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Originally posted on Automotive Fleet