Electric Last Mile expects to run out of cash in June

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Electric Last Mile Solutions Inc. warned Friday it may run out of cash in June, at least one month sooner than previously projected, unless it can raise additional capital.

The latest projections reflect higher costs in a number of areas, including employee retention and payments to suppliers, the suburban Detroit EV startup said in a filing.

“The company expects that, without obtaining additional financing, it has sufficient cash to continue operations into June 2022,” it said in the filing, adding that it was “actively pursuing potential sources of liquidity” to bolster its finances.

Electric Last Mile had said in March that it had enough cash on hand to fund operations through sometime between July and September. The company is under SEC investigation and has been without an auditor since February.

The stock has fallen 90 percent so far this year as the company faces several financial reporting challenges, including a long-past deadline to file its annual 10-K, a delay in filing its first-quarter 10-Q, and the need to redo, or restate, at least two quarters of past financial statements. Electric Last Mile has until May 31 to submit a plan to Nasdaq outlining how it will regain compliance with its listing rules.

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