In an online statement, Tevva said: “The Tevva team was deeply disappointed by this abrupt decision and had no opportunity to respond to ElectraMeccanica’s claims before they went public. Tevva gave full and open access at every point in the process to ElectraMeccanica’s advisors and management, with full financial due diligence prior to signing the definitive agreement and senior members of the ElectraMeccanica executive team in residence for many weeks at Tevva’s UK facility.”
Tevva refutes the basis under which the planned merger was terminated, with no regard to the agreement termination protocol, and will be seeking recourse through due legal process. Tevva will go public on its rebuttal of the ElectraMeccanica claims via the company’s advisors.
Tevva has laid down plans to regroup from this event. It has restructured its leadership team with David Roberts taking the role of CEO and Ken Scott becoming managing director, under the chairmanship of Ian Harnett. It has also re-engaged with a number of investors and public companies looking for a merger.
ElectraMeccanica announced its decision earlier this month, stating that the incurable breaches of the agreement included failures by Tevva to disclose material information.
The company said: “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.”