- Wednesday, October 16, 2024
By Ben Glickman
Electric-vehicle manufacturer, ElectraMeccanica Vehicles, will be merging with commercial electric-vehicle maker, Tevva, the companies announced on Tuesday. This decision follows ElectraMeccanica's recent exploration of strategic options.
On August 4th, ElectraMeccanica revealed its intention to consider alternative business plans involving third parties. The company has experienced a decline in sales following a voluntary recall of several vehicle models.
Once the transaction is finalized in the fourth quarter, ElectraMeccanica shareholders will possess 23.5% of the newly combined company, while Tevva shareholders will hold 76.5%.
The merged company is expected to have a cash balance between $70 million to $80 million and carry a debt of approximately $26 million. It is anticipated that the company will be listed on the Nasdaq Capital Market with the ticker symbol TVAA.
Both Tevva and ElectraMeccanica have stated that Susan Docherty, who has been serving as the CEO of ElectraMeccanica since December 2022, will continue in her role as the CEO of the combined company. David Roberts, a board director for Tevva, is expected to assume the position of executive chairman.
The companies have outlined a collective goal of achieving $1.3 billion to $1.5 billion in revenue by 2028, with adjusted earnings margins in the mid-teens.
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