Electric Last Mile Solutions (NASDAQ: ELMS) shares fell more than 45% during intraday trading on Monday after the company verified a probe by the Securities and Exchange Commission. The electric vehicle company as well as the SEC have yet to respond to requests for comment.
The news comes as the company also experiences unexpected resignations of both the chairperson and CEO. The termination came after ELMS’ determined that the executives had lied within an internal investigation regarding share purchases before going public through a SPAC deal.
According to the EV startup, it will need to secure further liquidity in order to manufacture and launch its vehicles. Nevertheless, ELMS says it has the necessary funds to continue operations until anywhere from July and September of 2022.
“We would not be enticed to pick some up (shares) until we have more clarity on customer interest in the vehicle; specifics on funding needs; the SEC investigation and accounting restatement,” D. A. Davidson analyst Michael Shlisky said.
The company is currently cooperating with the SEC investigation, according to the filing. ELMS stated that it “cannot predict the eventual scope, duration or outcome” of the investigation.