EV Space Co-Founders Exit After Difficulties

Electric Last Mile Solutions Leadership Resigns After Equity Purchase Investigation

The founding leaders of Electric Last Mile Solutions Inc. have stepped down from their positions. This decision follows an internal review which revealed that key executives had acquired company equity at significantly reduced prices prior to the firm’s public debut.

The company transitioned to a publicly traded entity through a merger with Forum Merger III Corp., a special purpose acquisition company (SPAC). President and CEO James Taylor, along with Chairman Jason Luo, both resigned immediately, as detailed in a recent regulatory filing.

Stock Price Impact and New Leadership

The announcement of these resignations caused a substantial decline in the company’s stock value. Trading under the ELMS ticker on Nasdaq, the stock experienced a near 40% drop, falling from a closing price of $5.59 to $3.36.

Shauna McIntyre, formerly of lidar firms Ouster and Sense Photonics, has been named interim president and CEO. Brian Krzanich will serve as the non-executive chairman of the board.

Settlement Agreements with Departing Executives

Despite the circumstances surrounding their departures, both Taylor and Luo have reached settlement agreements with Electric Last Mile Solutions (ELMS).

Taylor will continue to provide consulting services to the company for a two-year period, earning an annual salary of $300,000. He will also keep his 2021 cash bonus and maintain health benefits. As part of the agreement, Taylor will relinquish 1.8 million shares of the company’s common stock.

Luo’s Agreement and Financial Obligations

Luo will also act as a consultant for two years, but without additional compensation. He is required to surrender 6 million shares of common stock.

Furthermore, Luo must remit a total of $10 million, either in cash or stock, with stock valuation determined by a Volume Weighted Average Price (VWAP) calculation. Luo will retain his health benefits.