EV maker Electric Last Mile Solutions files for bankruptcy

Highlights:

• US commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) announced on Sunday its plans to file for Chapter 7 bankruptcy.
• The move comes after the company disclosed a probe by the SEC and withdrew all its previously issued business outlook in March.
• In February, CEO Jim Taylor and Chairman and founder Jason Luo resigned, following an investigation into their share purchases.

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

The move comes after the Troy, Michigan-based company disclosed a probe by the U.S. Securities and Exchange Commission and withdrew all its previously issued business outlook in March.

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ELMS had said the SEC was investigating matters discussed in prior filings including disagreements with an accounting firm and compliance with the Nasdaq's listing rules.

In February, the then Chief Executive Officer Jim Taylor and Chairman and founder Jason Luo resigned, following an investigation into their share purchases.

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"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 said in a statement on Sunday.

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The EV maker previously laid off about 24% of its staff as it focussed on its core business.

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