Electric Last Mile Solutions CEO and chairman resign after investigation

The top brass at Troy-based Electric Last Mile Solutions Inc. have resigned their positions after an investigation found they purchased discounted equity in the company just before it went public.

President and CEO James Taylor and Chairman Jason Luo, each co-founders of the electric commercial vehicles maker, stepped down after the company's board determined they bought company equity without obtaining an independent valuation, ELMS said in a news release late Tuesday afternoon.

As a result of the investigation, conducted by a special committee of the board formed in November, the company is restating its consolidated financial statements covering the period from its August 2020 inception through Dec. 31, 2020, the six months ended June 30, and the nine months ended Sept. 30.
Electric Last Mile achieved public company status in June in a SPAC merger deal with Delray, Fla.-based Forum Merger III Corp.

News that the promising startup is losing the leaders that built it into a company once valued at $1.4 billion sent its stock price crashing. Electric Last Mile Solutions (NASDAQ: ELMS) saw its stock fall from $5.59 per share before the 5 p.m. Tuesday announcement to $3.85 less an hour later.

The maker of electric commercial vehicles has appointed two of its board members to succeed Taylor and Luo. Shauna McIntyre steps in as interim president and CEO, and Brian Krzanich as nonexecutive chairman of the board.