A merger between Tevva Motors, the British electric truck which supplies electric trucks to Royal Mail, and ElectraMeccanica (NASDAQ:SOLO) has been scrapped by the US company, which also said it is exploring legal options.
The Essex-based startup engaged in "multiple incurable breaches" of the reverse takeover deal agreement from August, the New York-listed company said in a statement, including failing to disclose "material information" about itself.
ElectraMeccanica’s directors made the unanimous decision based on "additional information that came to light following execution of the arrangement agreement".
Tevva, which has received support from UK taxpayers, specializes in the production of electric and hydrogen-fueled trucks, including an agreement earlier this year to supply Royal Mail with 1,000 electric trucks.
As part of the ElectraMeccanica deal it was due to shift its base to the US and had received a US$6 million loan from the US company, which must now be repaid, plus interest, by January.
ElectraMeccanica said it "intends to explore all legal recourse available to it in connection with Tevva’s material breaches of the arrangement agreement", but that it remains well-capitalized and plans to resume its search for other deals or partners.
Tevva said earlier this year that planned to start selling a 7.5t hydrogen-electric truck, which benefits from hydrogen fuel cells that extend the vehicles' range to up to 354 miles (570km), some time before the end of 2023.
Having first unveiled its maiden vehicles in June 2022, the Tilbury-based company has raised US$140 million so far, with the latest bring a £42 million ($57 million) funding round last November.