ElectraMeccanica terminates arrangement agreement with Tevva

ElectraMeccanica announced that it has terminated-with immediate effect-the previously-announced arrangement agreement with Tevva Motors Limited as a result of multiple incurable breaches of the agreement by Tevva, including failures by Tevva to disclose to ElectraMeccanica material information about Tevva. The decision to terminate the agreement was made by a unanimous decision of ElectraMeccanica’s Board of Directors based on additional information that came to light following execution of the arrangement agreement. Pursuant to a facility letter entered into between ElectraMeccanica and Tevva concurrent with the execution of the arrangement agreement, the principal amount lent under the secured facility, together with any accrued interest and other sums, are due and repayable to ElectraMeccanica by no later than January 2, 2024. ElectraMeccanica intends to explore all legal recourse available to it in connection with Tevva’s material breaches of the arrangement agreement. ElectraMeccanica believes that it remains well-capitalized and intends to continue exploring other strategic third-party opportunities and potential options for its business.