Electric Last Mile Solutions, Inc. Announces Chapter 7 Bankruptcy Filing

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TROY, Mich., June 12, 2022 /PRNewswire/ — Electric Last Mile Solutions, Inc. (NASDAQ: ELMS) (“ELMS” or “the Company”), a commercial electric vehicle (“EV”) company focused on redefining productivity for the last mile, today announced that the company plans to file for Chapter 7 bankruptcy.

In February 2022following the resignations of Jim Taylorthe former Chief Executive Officer of the Company, and Jason Luocompany founder and former executive chairman, the company has appointed a member of the board of directors Shauna McIntyre as CEO and Acting President, in part due to her extensive automotive experience.

The ELMS Board of Directors and new management team under Ms. McIntyre launched a comprehensive review of the company’s product and go-to-market plans, instilled a culture of safety and focused the workforce on the production of quality vehicles. This process included evaluating the Company’s planned product offerings, production plans and certification processes, including the feasibility of achieving previously announced goals.

Based on the findings of the same Board-initiated investigation that led to the resignations of Mr. Taylor and Mr. Luo, ELMS was forced to withdraw its financial guidance and report the company’s prior financial statements. unreliable. The compounding effect of these events, along with an ongoing SEC investigation launched this year, have made it extremely difficult to find a new auditor and obtain additional funding.

Still, the Company continued to work aggressively to raise new sources of capital, while working closely with advisors to assess and improve its liquidity position. Ultimately, the Board has determined, after careful consideration with the assistance of the Company’s external advisors and on the recommendation of the Company’s management, that it is in the best interest of the Company and its shareholders, stakeholders, creditors and other interested parties to file a claim for relief under Chapter 7.

“I am very disappointed with this result, as our ELMS team has shown incredible determination to prepare our electric vans to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation,” said Ms. McIntyre. “Unfortunately, there were too many hurdles to overcome in the short time we had. I couldn’t be more proud of what our team was able to accomplish under very difficult circumstances. This is viable technology. and essential, and I am confident that many of our talented employees will play a future role in this energy transition effort.”

“Over the past several months, the ELMS Board of Directors and the new ELMS management team have worked tirelessly to resolve the financial, governance and operational issues inherited from the company, and tremendous progress has been made. achieved, in particular towards the certification of vehicles,” said Brian Krzanich, Chairman of the Board of ELMS and former CEO of Intel. “Therefore, it is extremely frustrating that we had to go this route, but it was the only responsible next step for our shareholders, partners, creditors and employees.”

About Electric Last Mile Solutions, Inc.
Electric Last Mile Solutions, Inc. (Nasdaq: ELMS) is focused on defining a new era in which commercial vehicles operate cleanly as connected, personalized solutions that make businesses more efficient and profitable. ELMS’ first vehicle, the Urban Delivery, was to be the first Class 1 commercial electric vehicle in the US market. For more information, please visit www.electriclastmile.com.

Forward-looking statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ from its expectations, estimates and projections and, therefore, , you should not rely on these forward-looking statements as predictions of future events. Words such as “expect”, “estimate”, “project”, “budget”, “expect”, “anticipate”, “intend”, “plan”, “may”, “will” , “could”, “should”, “believes”, “predicts”, “potential”, “continues” and other similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the expectations of the Company regarding the timing of a potential Chapter 7 filing and the potential implications for the Company’s shareholders, stakeholders, creditors and other interested parties. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Many of these factors are beyond the Company’s control and are difficult to predict. Factors that could cause such differences include, but are not limited to, risks and uncertain udes described in the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2021 and in the Company’s future filings with the Securities and Exchange Commission. Some of these risks and uncertainties may in the future be magnified by the COVID-19 outbreak and there may be additional risks that the Company considers immaterial or which are unknown. The Company cautions that the above list of factors is not exclusive. The Company cautions readers not to place undue reliance on forward-looking statements, which speak only as of the date made. The Company neither undertakes nor accepts any obligation or undertaking to issue updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances about which any such statement is made. based.

SOURCE Electric Last Mile Solutions, Inc.

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