Why Electric Last Mile Solutions Stock Is Plunging

Electric Last Mile Solutions Inc 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.