Electric Last Mile Solutions Inc (NASDAQ:ELMS) shares are trading significantly lower Monday after the company announced that it plans to file for bankruptcy.
Electric Last Mile Solutions launched a comprehensive review of its business and the findings forced the company to withdraw financial guidance and declare its past financial statements unreliable.
"The compound effect of these events, along with a pending SEC investigation initiated this year, made it extremely challenging to secure a new auditor and attract additional funding," the company said.
Ultimately, Electric Last Mile Solutions decided it's in the shareholders best interest to file for Chapter 7 bankruptcy.
"Unfortunately, there were too many obstacles for us to overcome in the short amount of time available to us," said Shauna McIntyre, interim CEO and president of Electric Last Mile Solutions.
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ELMS Price Action: Electric Last Mile Solutions is making new 52-week lows on Monday.
The stock was down 56.7% at 22 cents at time of publication, according to data from Benzinga Pro.
Photo: courtesy of Electric Last Mile Solutions.
