Electric delivery van maker Electric Last Mile Solutions, under investigation by a top U.S. securities regulator, has announced plans to file for bankruptcy, less than a year after going public.
The Michigan-based company, which aimed to provide urban delivery vehicles, announced late Sunday had filed for Chapter 7 bankruptcy, or liquidation.
In February, the company's CEO, Jim Taylor, and chairman, Jason Luo, resigned following an internal investigation into share purchases by the co-founders before ELMS went public.
ELMS appointed board member Shauna McIntyre as interim CEO to review the company's products and plans.
The company was forced to withdraw its financial projections and acknowledged its previous financial reports were unreliable.
The Nasdaq exchange, where ELMS is listed, put the manufacturer on notice in April and again in May for failing to file results with the U.S. Securities and Exchange Commission for the 2021 fiscal year and the first quarter of 2022.
"I'm very disappointed by this outcome because our ELMS team demonstrated incredible determination to get our electric vans ready to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation," McIntyre said in a statement.
"Unfortunately, there were too many obstacles to overcome in the short time available."
Listed on Nasdaq since the end of June 2021, ELMS's share price fallen steadily.
It plunged on Monday in premarket trading to 22 cents, a drop of nearly 58%.
Copyright 2022, Agence France-Presse