Complaint Filed Against ElectraMeccanica in Connection With Termination of Arrangement
November 07 2023 - 4:00PM
Business Wire
ElectraMeccanica Vehicles Corp. (NASDAQ: SOLO)
(“ElectraMeccanica”), a designer and assembler of electric
vehicles, today announced that Tevva Motors Limited
(“Tevva”) filed a complaint (the “Complaint”) in the United
States District Court for the District of Arizona on November 3,
2023 against ElectraMeccanica, 1432952 B.C. Ltd. (“Holdco”),
1432957 B.C. Ltd. (“Parentco”) and Susan E. Docherty,
ElectraMeccanica’s Chief Executive Officer and Interim Chief
Operating Officer.
As previously announced, on October 4, 2023, ElectraMeccanica
notified Tevva of the termination of that certain arrangement
agreement (the “Arrangement Agreement”) dated August 14, 2023, by
and among ElectraMeccanica, Tevva, Holdco and Parentco, pursuant to
which ElectraMeccanica and Tevva were to combine by way of a
statutory plan of arrangement under the Business Corporations Act
(British Columbia) (the “Arrangement”).
The Complaint alleges breach of contract, defamation and
tortious interference by the defendants, as applicable, in
connection with the Arrangement Agreement and the transactions
contemplated therein. The Complaint seeks actual damages of US$75
million, unspecified punitive damages and attorneys’ fees and
costs. Additionally, the Complaint seeks preliminary and permanent
injunctive relief (i) preliminarily prohibiting ElectraMeccanica
from completing a merger with any other merger partner pending
resolution of the Complaint; (ii) preventing ElectraMeccanica from
dissipating its cash reserves through dividend or otherwise; (iii)
requiring ElectraMeccanica to complete the Arrangement with Tevva;
and (iv) otherwise requiring effectuation of the Arrangement.
ElectraMeccanica and the other defendants believe that Tevva’s
allegations are without merit and intend to vigorously defend their
position to the fullest extent permitted by law. ElectraMeccanica
also intends to pursue its own legal rights and remedies against
Tevva.
About ElectraMeccanica
ElectraMeccanica (NASDAQ: SOLO) is a designer and assembler of
environmentally efficient electric vehicles intended to enhance the
urban driving experience, including commuting, delivery and shared
mobility.
Safe Harbor Statement
This press release includes “forward-looking statements” within
the meaning of U.S. federal securities laws and applicable Canadian
securities laws. Forward-looking statements may be identified by
words or expressions such as “expects,” “anticipates,” “intends,”
“plans,” “believes,” “estimates,” “may,” “will,” “projects,”
“could,” “should,” “would,” “seek,” “forecast,” or other similar
expressions. Forward-looking statements represent current judgments
about possible future events, including, but not limited to,
statements regarding ElectraMeccanica’s and the other defendants’
intent to vigorously defend their position to the fullest extent
permitted by law, as well as ElectraMeccanica’s intent to pursue
its own legal rights and remedies against Tevva. Forward-looking
statements are based on the current beliefs or expectations of the
management of ElectraMeccanica and are inherently subject to a
number of risks, uncertainties, and assumptions, most of which are
difficult to predict and many of which are beyond
ElectraMeccanica’s control. Actual results may differ materially
from those expressed or implied in the forward-looking statements
due to risks and uncertainties including, but not limited to,
whether ElectraMeccanica will be successful in its defense against
the allegations under the Complaint or in any future legal
proceedings against Tevva. Additional factors that could cause
actual results to differ materially from those expressed or implied
in the forward-looking statements can be found in
ElectraMeccanica’s filings with the Securities and Exchange
Commission (the “SEC”), including its Annual Report on Form 10-K
for the fiscal year ended December 31, 2022, its Quarterly Reports
on Form 10-Q filed with the SEC during 2023, as well as in its
subsequent filings with the SEC. Accordingly, readers are cautioned
not to place undue reliance on forward-looking statements. It is
uncertain whether any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do, what impact they will have on the results of operations
and financial condition of ElectraMeccanica. Forward-looking
statements speak only as of the date they are made, and
ElectraMeccanica undertakes no obligation to update publicly or
otherwise revise any forward-looking statements, whether as a
result of new information, future events, or other factors that
affect the subject of these statements, except where it is
expressly required to do so by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20231107400884/en/
John Franklin ir@emvauto.com
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