ElectraMeccanica, the former manufacturer of three-wheeled electric vehicles, has announced the termination of its plan to merge with Tevva, a hydrogen-electric truck maker. The decision was made by ElectraMeccanica’s board unanimously due to multiple breaches of the agreement by Tevva that were deemed incurable.
Key Takeaway
ElectraMeccanica, the manufacturer of three-wheeled electric vehicles, has decided to terminate its merger plan with Tevva due to multiple incurable breaches of agreement. The undisclosed material information and additional information that came to light led to the decision. ElectraMeccanica will now explore other strategic opportunities with third-party companies.
The Unresolved Breaches
ElectraMeccanica stated that Tevva failed to share crucial “material information” with them, leading to the termination of the merger plan. However, further details regarding the undisclosed information were not revealed by either company.
Tevva responded to the decision, expressing deep disappointment and choosing not to provide any additional explanation for the alleged breaches.
New Information Coming to Light
In a cryptic press release, ElectraMeccanica revealed that the board’s decision was based on additional information that had come to light. The company plans to explore all possible legal actions to recover the cash it had previously lent to Tevva.
Notably, in August, ElectraMeccanica had agreed to lend $6 million in working capital to Tevva. The merger between the two companies was announced shortly after this agreement, with ElectraMeccanica CEO Susan Docherty highlighting Tevva’s extensive experience in the UK and EU markets, commercially ready products, and significant customer list as advantages of the merger.
Exploring Alternative Opportunities
Despite the setback, ElectraMeccanica intends to continue exploring other strategic partnerships with third-party companies. The decision to terminate the merger plan with Tevva will undoubtedly reshape ElectraMeccanica’s future plans and strategies.
