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Electric Last Mile shares plummet to $1 after company confirms SEC probe


The ELMS Urban Delivery is scheduled to go on sale later in the year. It will be the first commercial Class 1 electric vehicle in America and it will be manufactured at the Company’s Mishawaka plant in Indiana.

Electric Last Mile Solutions

DETROIT – Shares of EV start-up Electric Last Mile SolutionsAfter the Securities and Exchange Commission conducted an investigation into the operations of the company, intraday trading Monday fell to $1.

After unexpected resignations in the last month, Troy-based company is facing a late Friday disclosure. company’s chairperson and CEO.The reasons for these departures are related to ELMS’ internal investigation that found the executives lied about share purchases before the company was publicly traded through a special-purpose acquisition company (SPAC).

According to Friday’s regulatory filing, ELMS claimed that it received notice of the SEC investigation on March 7th. The company said that it had withdrawn previous guidance and needed to raise funds to get its vehicles onto the market.

Shares of ELMS were down by as much as 47% during intraday trading Monday to $1 a share — marking the lowest price to date for a SPAC-backed electric vehicle start-up.

According to the company, it had sufficient cash reserves to keep operations going through September 2022.

Among the influx of new EV startup companies that have been listed through a SPAC agreement in the last two years is ELMS. Most of these companies were eventually acquired after initial spikes in share price. plagued by federal investigations, scandals and executive upheaval.

Nikola Corp., Lordstown Motors Lucid Groupare one of the companies that have revealed SEC inquires. Nikola complied with this request late last year. pay the SEC $125 millionTo settle allegations that it defrauded investors through misleading them regarding its products, technical capability and future business prospects.

ELMS grabbed headlines in 2016 when it was listed on the stock exchange. It had been preparing to produce electric vans for use as commercial vehicles at a former site. General MotorsIndiana plant that produced the last gas-guzzling Hummer SUVs around mid-2000s.

According to the filing, the company has been fully cooperative with the SEC investigation. ELMS stated that it cannot predict the outcome, scope or duration of the investigation.