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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.
Posted In: SOLO
