In an announcement, ELMS revealed that it will start liquidating its assets via a Chapter 7 bankruptcy process after failing to secure financing following the departure of its founder and CEO back in February.
An investigation found that the company's financial statements were questionable at best, prompting the shakeup. Interim CEO Shauna McIntyre and ELMS' board of directors ultimately decided to close up shop after a "comprehensive review of the company's products and commercialization plans" found no better option for stakeholders.
When ELMS first went public in late June 2021 via a merger with a special purpose acquisition company, a wave of SPAC deals was occurring that resulted in numerous EV makers going public. ELMS is the first of these post-SPAC EV makers to announce that it is filing for bankruptcy.
ELMS, in case you are unfamiliar with the company, had been producing commercial vans that run on electricity rather than traditional gasoline.
Not only did then-CEO Jim Taylor leave ELMS following the investigation revelations but so did founder and chairman Jason Luo. It appears as though these two were behind the company's dare-we-say fraudulent financial statements – or lack thereof.
In a statement, ELMS said that these two executive departures, as well as a related investigation by the Securities and Exchange Commission (SEC), have made it "extremely challenging" to secure any additional funding for the company.
ELMS is probably just the start of a wave of bankruptcies soon to strike the EV industry, which in many ways resembles the "green" energy scams of the Barack Hussein Obama years.
As you may recall, Obama pumped billions of taxpayer dollars into so-called green energy programs that were initially marketed as a way to help the United States decrease its reliance on fossil fuels, which we were told are scarce.
Years later, it became more evident that the plan was to abolish fossil fuels entirely, but before that happened many of the green energy companies that Obama funded with American taxpayer dollars went belly up, and all the money disappeared.
As many as 50 of the companies Obama subsidized disappeared entirely, along with a large chunk of the massive $825 billion in "stimulus" money they were handed to supposedly help kickstart a flailing economy.
In 2012, 19 green energy companies that partook of this money feast, which began in 2009, filed for bankruptcy. One of them, as you may recall, was Solyndra, a solar energy flop.
Today, the scam has morphed into electric-powered vehicles, which are rapidly replacing gas-powered vehicles thanks to heavy subsidies from the government. And just like Obama's green energy scams, today's EV agenda is beginning to reveal itself as more of the same.
ELMS was already at risk of being delisted from the stock market over delays in filing its 2021 annual report and Q1 2022 financial report. The company blamed its accounting firm, BDO, which it accused of conspiring with Taylor and Luo to buy discounted shares pre-merger.
Ever since then, ELMS has gone without an auditor, creating the longest gap ever for a public company to operate without any kind of accountability.
"It's extremely frustrating that we must take this route," said Brian Krzanich, chair of the ELMS board and a former CEO at Intel.
"But it was the only responsible next step for our shareholders, partners, creditors, and employees."
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