ELMS - Electric Last Mile Solutions plunges after top execs leave in wake of board investigation

Electric Last Mile Solutions (NASDAQ:ELMS) is in freefall after the company's CEO and board chairman have resigned following a special committee investigation into certain sales of equity securities made individuals associated with the EV startup. The board also concluded that the ELMS' previously issued consolidated financial statements will need to be restated. Based on the special committee’s investigation, the company concluded that in November and December 2020, shortly before the company’s December 10, 2020 announcement of a definitive agreement for a business combination with Forum Merger III Corporation, certain Electric Last Mile executives purchased equity in the company at substantial discounts to market value without obtaining an independent valuation. On Wall Street, Cowen dropped its rating on Electric Last Mile Solutions (ELMS) cut to Market Perform from Outperform. BTIG lowered its rating to Neutral from Buy. D.A. Davidson cut its rating to Neutral from Buy. Wedbush Securities also lost confidence

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Electric Last Mile Solutions plunges after top execs leave in wake of board investigation