The planned merger of ElectraMeccanica Vehicles Corp. and British electric truck-maker Tevva Motors has been called off for what the Vancouver-based company calls “incurable breaches” of the agreement.
ElectraMeccanica said pursuant to a facility letter between it and Tevva, the company expects the Tilbury-based firm to repay a loan, with interest, no later than next Jan. 2. The merger, announced barely two months ago, was to be an all-stock deal that gave Tevva roughly three-quarters ownership of the combined company, with ElectraMeccanica shareholders holding about 23.5 per cent.
Its ambitious plan was never realized. The Solo had teething problems and only a relative handful were built, some in its original Vancouver facility but most by Zongshen Industrial Group, a Chinese motorcycle and quad-bike maker. The Solo also had trouble getting safety certification. A number were recalled and ElectraMeccanica eventually repurchased its entire production run.