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Updates to add Tevva statement
Electric vehicle designer and assembler ElectraMeccanica Vehicles (NASDAQ:SOLO) on Wednesday said it would terminate its proposed merger deal with UK-based truck manufacturer Tevva.
SOLO stock earlier closed -7.8% at $0.57. It was up about 4% after hours.
ElectraMeccanica (SOLO) and Tevva announced the proposed deal back in August after the end of a formal strategic alternatives process by SOLO’s board. Shares of SOLO have fallen about 34% since then.
The termination of the deal was “a result of multiple incurable breaches of the agreement by Tevva, including failures by Tevva to disclose to ElectraMeccanica (SOLO) material information about Tevva,” the company said in a statement, without providing specific details.
“We are deeply disappointed by ElectraMeccanica’s (SOLO) abrupt decision to terminate the proposed merger agreement. We are considering our position and until we have done so will not not be making further comment,” a Tevva spokesperson told Seeking Alpha in an emailed statement.
SOLO said its board had come to a unanimous decision based on “additional information that came to light following execution of the arrangement agreement.” The company added that it was intending to explore legal actions against Tevva.
“Pursuant to a facility letter entered into between ElectraMeccanica (SOLO) and Tevva concurrent with the execution of the arrangement agreement, the principal amount lent under the secured facility, together with any accrued interest and other sums, are due and repayable to ElectraMeccanica (SOLO) by no later than January 2, 2024,” the company said.
SOLO added that it would continue to explore other strategic third-party opportunities and potential options for its business.
