First EV SPAC Announces its Stock Will Go to Zero and Die | Wolf Street

OK, so now, we’re “into June,” and here comes the SEC filing about the company’s decision to file for Chapter 7 bankruptcy. Chapter 7 covers liquidation, not restructuring. It’s the end. Meaning the company’s assets, if any, get sold to the highest bidder, and the lawyers and some creditors will get the proceeds, if any, and the stockholders will get to hold the bag and get nothing. So the company said in the SEC filing:

Upon the news, the stock [ELMS] kathoomphed 62% today from nearly nothing to almost nothing, to $0.20 a share, from $0.51 on Friday. It’s down 98% from the high on June 28, 2021 (data via YCharts):

First EV SPAC Announces its Stock Will Go to Zero and Die | Wolf Street