A non-compliance notice has been issued to electric vehicle startup Electric Last Mile Solutions Inc. from the Nasdaq Stock Market for failing to file specific reports with the Securities and Exchange Commission. The notice comes after the company’s April 5 filing with the SEC, which stated, “The Company’s management is working diligently to complete the Form 10-K and intends to file the Form 10-K as soon as practicable, but does not expect to do so within the timeframe specified by Rule 12b-25.”
The notice will reportedly not affect ELMS’ current listing and trading statuses, but the Michigan-based startup has until May 31 to develop a strategy for regaining compliance. If approved, ELMS will have until September 27 to carry out the plan.
ELMS has faced other issues recently, including the resignation of its Chief Executive Officer, Jim Taylor, after an investigation into allegations of improper trading. The company’s chairman, Jason Luo, also resigned amid the investigation. Around 25% of Electric Last Mile’s workforce was let go, and the company has not provided any timeline on when it will start production of its electric delivery vans in Mishawaka, Indiana.
Requests for comments from ELMS this week were reportedly not answered. ELMS stock has dropped almost 90% since its public offering last June, landing at $1.12 per share as of Tuesday. Last month, the company said it could continue operating until at least July with the current cash it has.
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