In a statement issued by Tevva and ElectraMeccanica, on 29 November 2023, both companies have announced they have amicably resolved the litigation surrounding their intended merger.
In the statement, the two companies have mutually agreed to put an end to any legal disputes stemming from the merger agreement.
”ElectraMeccanica and Tevva agreed that it was in their mutual best interests to resolve any litigation relating to the arrangement agreement with no attribution or admission of wrongdoing by any party. The parties further believe that they are best served by moving forward as independent companies with their respective business models. ElectraMeccanica and Tevva will continue to pursue their respective futures as leaders and innovators in the growing electrification market,” says the statement on both websites.
This brings to an end a bitter dispute between the two companies following ElectraMeccanica’s withdrawl from a proposed merger with Tevva. The merger announcement, in August 2023, had outlined how the two companies would come together to create an international business with revenue targets of $1.5bn. Then in October ElectraMeccanica dramatically pulled out of the deal, citing ”multiple incurable breaches of the agreement by Tevva, including failures by Tevva to disclose to ElectraMeccanica material information about Tevva” in a statement, released on 04 October 2023. Tevva hit back with a threat of litigation against ElectraMeccanica and its CEO, Susan Docherty and the whole affair looked to be heading for the courts.
In the aftermath of the resolution, Tevva has resumed discussions with a range of investors and public companies actively seeking potential mergers. The company is confident that, through these opportunities, it will secure the necessary medium and long-term financing. This funding is vital for Tevva to execute its business plan, emphasising the commercialisation of its products and the strategic expansion of sales operations.