UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 8.01 | Other Events. |
On November 28, 2023, ElectraMeccanica Vehicles Corp. (“ElectraMeccanica”) announced that it has entered into a settlement agreement (the “Settlement Agreement”) by and among ElectraMeccanica, Tevva Motors Limited (“Tevva”), 1432952 B.C. Ltd. (“Holdco”), 1432957 B.C. Ltd. (“Parentco”) and Susan E. Docherty, ElectraMeccanica’s Chief Executive Officer and Interim Chief Operating Officer (collectively, the “Parties”), relating to the termination of that certain arrangement agreement (the “Arrangement Agreement”), dated August 14, 2023, by and among ElectraMeccanica, Tevva, Holdco and Parentco. Pursuant to the terms of the Settlement Agreement, the Parties have agreed to, among other things, the following: (i) Tevva will dismiss, with prejudice, its previously filed federal and state court complaints relating to the Arrangement Agreement and the transactions contemplated therein; (ii) ElectraMeccanica will forgive the approximately $6.1 million due from Tevva under the term loan facility (the “Working Capital Facility”) previously provided by ElectraMeccanica, and will enter into a release of the debenture securing Tevva’s obligations under the Working Capital Facility; (iii) a general release and waiver between ElectraMeccanica, Parentco, Holdco and Ms. Docherty, on the one hand, and Tevva on the other hand, in favor of the other party; and (iv) ElectraMeccanica will pay Tevva $380,000 in connection with the Settlement Agreement.
As previously disclosed in ElectraMeccanica’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, ElectraMeccanica had determined that the loan receivable advanced pursuant to the Working Capital Facility was fully impaired and recorded an impairment loss of $6 million in its condensed consolidated statement of operations and comprehensive loss for the third quarter of 2023.
On November 28, 2023, ElectraMeccanica issued a press release relating to the Settlement Agreement. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference in its entirety.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit | |
| Number | Description |
| 99.1 | Press Release, dated November 28, 2023 |
| 104 | Cover Page Interactive Data File (cover page XBRL tags are embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 28, 2023 | ELECTRAMECCANICA VEHICLES CORP. | |
| By: | /s/ Michael Bridge | |
| Michael Bridge | ||
| General Counsel and Corporate Secretary | ||