Electric vehicle manufacturer Electric Last Mile Solutions files for bankruptcy

U.S. commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) (ELMS.O) said on Sunday it plans to file for Chapter 7 bankruptcy, following a review of its products and marketing plans.

The move comes after the Troy, Michigan-based company disclosed an investigation by the US Securities and Exchange Commission and withdrew all of its previously issued trading outlooks in March.

ELMS had said the SEC was looking into matters discussed in previous filings, including disagreements with an accounting firm and compliance with Nasdaq listing rules.

In February, then-CEO Jim Taylor and chairman and founder Jason Luo resigned, following an investigation into their stock purchases electric vehicle maker Electric Last Mile Solutions

“The combined effect of these events, coupled with a pending SEC investigation launched this year, made it extremely difficult to secure a new auditor and attract additional funding,” ELMS said in a statement on Sunday.

The electric vehicle maker previously laid off around 24% of its staff as it focused on its core business electric vehicle maker Electric Last Mile Solutions

The company went public in June 2021 through a merger with blank check firm Forum Merger III Corp.

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