ElectraMeccanica Provides December CEO Update, Company Says its in Merger Talks With a Number of Electric BusinessesMonday, December 11, 2023
Vancouver, BC, December 11, 2023--(T-Net)--ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO), a designer and assembler of electric vehicles, today issued a letter to its shareholders from Susan E. Docherty, ElectraMeccanica's CEO, providing an update on the business.
December CEO Update
I hope by now that many of you have had the chance to review my October update regarding general next steps for ElectraMeccanica. That letter will serve as helpful background for today's update.
I also hope that you saw our press release last week announcing the resolution of all litigation activity in connection with the electric medium-duty truck manufacturer Tevva Motors Limited.
With the prior effort to combine with Tevva in the rear-view mirror - it's time to look forward.
I'm pleased to report the following:
1. The ElectraMeccanica team and Board - despite the obvious distractions - never slowed down on post-Tevva efforts to identify new promising candidates for our still-valid merger strategy. We've remained laser focused on taking every step possible to protect shareholder value in the short term and create it over the long term.
2. There remains a great deal of interest across the larger electrification sector in ElectraMeccanica. High interest rates and a conservative commercial lending environment continue to make our cash and strong balance sheet valuable and attractive to potential merger candidates.
3. Since the second week in October, 2023, we've engaged in methodical talks with over 20 different companies. These comprise both public and private entities across a diverse range of product sets - i.e., we're evaluating various companies across the broader electrification spectrum. While we share stockholders' sense of urgency around effecting a transaction, we also are mindful of the importance of careful and thorough due diligence.
4. We've recently narrowed the focus of these efforts to just a handful of electric businesses. We're conducting detailed, data- and performance-driven evaluations of these candidates right now, including site visits. Others continue to come in, giving us a backup pool of candidates, should we need it.
5. Additionally, we are taking steps to further reduce our cash burn to even lower levels by year-end.
6. To positively impact our balance sheet, we are also actively exploring a wider variety of ways to leverage our state-of-the-art, 235,000-square-foot manufacturing facility in Mesa, AZ.
I look forward to providing another update within the next month. Nothing is higher priority than getting ElectraMeccanica back into a viable position with the right merger partner to maximize revenue and profit as we advance electrification. In the meantime, please reach out to our shareholder relations team at: firstname.lastname@example.org with any questions.
ElectraMeccanica CEO and Board Member
ElectraMeccanica (NASDAQ: SOLO) is a designer and assembler of electric vehicles.
Safe Harbor Statement
This press release and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws and applicable Canadian laws. Forward-looking statements are any statements other than statements of historical fact and represent our current judgement about possible future events. [ MORE ]
Safe Harbor Statement
This press release and related comments by management may include "forward-looking statements" within the meaning of the U.S. federal securities laws and applicable Canadian laws. Forward-looking statements are any statements other than statements of historical fact and represent our current judgement about possible future events.
In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances.
We believe these judgements are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of important factors, many of which are described in our most recent Annual Report on Form 20-F or Form 10-K and our other filings with the U.S. Securities and Exchange Commission.
We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
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