ElectraMeccanica provides update on litigation with Tevva

ElectraMeccanica announced that the District Court for the District of Arizona issued an order dismissing the previously filed complaint by Tevva Motors against ElectraMeccanica, 1432952 B.C., 1432957 B.C. and Susan Docherty, ElectraMeccanica’s CEO and Interim COO, relating to the termination of that certain arrangement agreement, dated August 14, 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 ElectraMeccanica, Holdco and Parentco being Canadian corporations and Tevva’s failure to establish Arizona as Docherty’s state of domicile. Tevva has until November 21 to file an amended complaint seeking to cure the deficiencies identified in the order. On November 7, Tevva subsequently filed a 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 and intend to defend their position to the fullest extent. ElectraMeccanica also intends to pursue its own legal rights and remedies against Tevva in appropriate legal jurisdictions. ElectraMeccanica has provided Tevva a notice of default and demand for payment as to the approximately $6.1M of debt owed by Tevva under the previously established working capital facility. 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.