The Nasdaq Stock Market has notified Electric Last Mile Solutions Inc. that the EV startup has fallen out of compliance with its listing rules, signaling more trouble for the struggling company.
The notice was issued to Electric Last Mile, which trades under the ticker ELMS, after it failed to file required periodic reports with the Securities and Exchange Commission in a timely fashion.
The Nasdaq’s action, announced Monday, has no immediate impact on the company’s listing or trading, but ELMS must submit a plan to regain compliance by May 31, according to a news release. If the plan is accepted, the company may be granted until Sept. 27 to regain compliance.
“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 for the reasons discussed in the Notification,” Electric Last Mile said in an 8-K report to the SEC, dated April 5.
The company based in suburban Detroit indicated at the start of the month that it would be unable to submit its 10-K, or annual financial report, for 2021 on time. It was the latest in a string of financial reporting delays that started with the abrupt resignation of the startup’s CEO and chairman due to improper trading.
Since then, the maker of electric delivery vans has gone from rising EV star to financial distress. It has slashed a quarter of its headcount and offered no projections for when production would commence at its Mishawaka, Ind., plant. The company said last month it has enough cash to sustain operations through sometime between July and September.
An Electric Last Mile spokesman did not answer a request for comment Tuesday.
ELMS stock dipped about 3 percent to $1.12 per share Tuesday afternoon, down nearly 90 percent from $10.19 when it went public June 25.