ELMS - Electric Last Mile Solutions slumps on announcing Chapter 7 bankruptcy filing

Electric Last Mile Solutions (NASDAQ:ELMS) plunged 51% in premarket trade after it announced plans to file for Chapter 7 bankruptcy after the board and the new hired leadership team in February 2022 reviewed its products and commercialization plans. The review included assessing the company's planned product offerings, production plans, and certification processes, including the feasibility of meeting previously announced targets. 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 financial guidance and declare the company's past financial statements unreliable. However, the company continued to work aggressively on raising new sources of capital, while working closely with advisors to assess and improve its liquidity position.

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Electric Last Mile Solutions slumps on announcing Chapter 7 bankruptcy filing