Update on ElectraMeccanica Litigation Dispute With Tevva
ElectraMeccanica Vehicles Corp. (NASDAQ:SOLO) ("ElectraMeccanica"), a designer and assembler of electric vehicles, today announced that the United States District Court for the District of Arizona issued an order on November 7, 2023 dismissing the previously filed complaint by Tevva Motors Limited ("Tevva") 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, relating to the termination of that certain arrangement agreement, dated August 14, 2023, by and among the parties.
The Arizona District Court dismissed the complaint due to the court's lack of subject-matter jurisdiction as a result of (i) ElectraMeccanica, Holdco and Parentco being Canadian corporations and (ii) Tevva's failure to establish Arizona as Ms. Docherty's state of domicile in the complaint. Pursuant to the Arizona District Court's order, Tevva has until November 21, 2023 to file an amended complaint seeking to cure the deficiencies identified in the order. On November 7, 2023, Tevva subsequently filed a substantially similar complaint in the Maricopa County Superior Court, State of Arizona. ElectraMeccanica has not been served with the new complaint.
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 in appropriate legal jurisdictions, including potentially the United States, Canada, and the United Kingdom, and to take steps intended to ensure Tevva's debtor obligations, as applicable, are met. Specifically, ElectraMeccanica has provided Tevva a notice of default and demand for payment as to the approximately $6.1 million of debt owed by Tevva under the previously established working capital facility between the parties. ElectraMeccanica also delivered notice pursuant to a Deed of Priority to the other three Tevva secured creditors seeking consultation over the prompt appointment of an insolvency administrator. In addition, ElectraMeccanica is evaluating and considering legal action to obtain relief as to certain persons in conjunction with the original arrangement agreement and their individual efforts in not meeting contractual, fiduciary, and debtor obligations.
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; ElectraMeccanica's intent to pursue its own legal rights and remedies against Tevva in appropriate legal jurisdictions, including potentially the United States, Canada, and the United Kingdom, and to take steps intended to ensure Tevva's debtor obligations, as applicable, are met; and ElectraMeccanica's plans to evaluate and consider legal action to obtain relief as to certain persons in conjunction with the original arrangement agreement and their individual efforts in not meeting contractual, fiduciary, and debtor obligations. 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 and the other defendants will be successful in their defense against the allegations under any amended federal complaint, state complaint or in any future legal proceedings involving Tevva and/or any related persons. 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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