ElectraMeccanica, former maker of three-wheeled electric vehicles, said on Wednesday that it has “terminated” its plan to merge with Tevva, which makes hydrogen-electric trucks (not sandals).
ElectraMeccanica said its board decided unanimously to bin the deal over “multiple incurable breaches of the agreement by Tevva.” The alleged breaches include “failures by Tevva” to share “material information” with ElectraMeccanica, the latter firm said.
What material information? A spokesperson for ElectraMeccanica declined to elaborate in an email to TechCrunch.
Tevva’s spokesperson told TechCrunch that it’s “deeply disappointed by ElectraMeccanica’s abrupt decision.” They also declined to elaborate further.
Cryptically, ElectraMeccanica’s press release said the board’s decision was “based on additional information that came to light.” It added that ElectraMeccanica would “explore all legal recourse available to it” to recover cash it had lent out.
In August, ElectraMeccanica said it would lend $6 million in working capital to the U.K. truck maker. Their merger was announced that month, following a rocky year for ElectraMeccanica. During that time, the automaker recalled all of its teeny-tiny vehicles, and then pivoted away from the three-wheeler market entirely.
After the companies announced the merger, ElectraMeccanica CEO Susan Docherty said the firms’ operations would complement each other. The executive cited Tevva’s “experience in the U.K. and EU” and its “commercially ready products and significant customer list” as upsides to the merger.
ElectraMeccanica’s statement today added that it “intends to continue exploring other strategic third-party opportunities.”
Source @TechCrunch
