The move comes after the Michigan-based company disclosed an investigation by the US Securities and Exchange Commission and withdrew its previously issued all-business approach.
US commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) said on Sunday it plans to file for Chapter 7 bankruptcy after reviewing its products and commercialization plans.
The move comes after the Troy, Michigan-based company disclosed an investigation by the US Securities and Exchange Commission and withdrew its previously issued all-business approach in March.
ELMS had said the SEC was investigating matters discussed in prior filings, including disagreements with an accounting firm and compliance with Nasdaq’s listing rules.
In February, then-Chief Executive Officer Jim Taylor and chairman and founder Jason Luo resigned following investigations into their share purchases.
“The mixed impact of these events, as well as a pending SEC investigation launched this year, made it extremely challenging to secure a new auditor and attract additional funding,” ELMS said in a statement on Sunday.
The EV maker had previously laid off about 24% of its workforce, focusing on its core business.
The company went public in June 2021 through a merger with blank-check firm Forum Merger III Corp.
(Reporting by Baranjot Kaur in Bengaluru; Editing by Shailesh Kuber)
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