Bankruptcy Electric Last Mile Solutions – TechCrunch

Electric Last Mile Solutions, a maker of commercial electrical appliances, announced on Monday that it would file for bankruptcy, the first in a series of bankruptcies. malfunctioning EV manufacturer SPACs get out of business.

Electric Last Mile Solutions, released in June 2021 through a $ 1.4 billion merger with Forum Merger III, plans to be liquidated through Chapter 7 bankruptcy, according to: presentation With the US Securities and Exchange Commission. The company, which developed the commercial electric car called Urban Delivery, has been owned by the SEC since March.

“Unfortunately, there were too many obstacles for us to overcome in the short time available to us,” said Shauna McIntyre, the interim executive director and president.

The bankruptcy announcement comes three weeks after the company warned it was in danger of cash, և less than a year after it launched on the Nasdaq, merging with a special purpose company instead of taking a tougher path. , which is required. traditional IPO.

Allowing: pre-income startups to accept an IPO shortcut before Sale of one car led to trouble on many fronts. In addition to Electric Last Mile Solutions, other EV manufacturers that have merged with SPAC over the past few years, including Faraday Future, Lordstown Motors, Lucid Motors, Nikola և Canoo, have come into conflict. are under investigation by the SEC, the removal of Nasdaq lists. Executive resignations և other delays և roadblocks in their travels to market the car.

The SEC at the moment Review of guidelines AC Expect the new guidelines to be finalized by the companies pursuing the traditional IPO in the second half of 2022. At the same time, some market players, including Goldman Sachs, Credit Suisse and Citigroup, have stopped or restricted their transactions. Of the approximately 600 SPACs currently seeking a company, some transactions have been suspended or canceled, according to SPAC examination.

In any case, it was a difficult year for Electric Last Mile Solutions.

The Company’s two Leading Leaders: President և CEO James Taylor և President Jason Luo resigned in February when the internal investigation revealed that they had acquired their own capital in the company at significant discounts before the merger of the company. The SEC announced its own investigation into Electric Last Mile Solutions shortly after reducing its shares to less than $ 1. The company laid off almost a quarter of its workforce to cut costs և removed the rest of the 2022 guideline.

In May, Electric Last Mile Solutions said it was in danger of being removed from the list due to the delay in submitting the 2021 Annual Report for the first quarter of 2022. The company blamed its former accounting firm BDO for the delay, accusing Taylor և Luo of working out a scheme to buy the discounted shares before the merger. Electric Last Mile Solutions has been without an auditor for longer than any other public company since the public debate.

“It’s very frustrating that we have to go this route,” said Brian Krzanich, former CEO and CEO of Intel, “but it was the only responsible next step for our shareholders, partners, creditors and employees.”

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