ELMS - Electric Last Mile Solutions filed an 8-K after hours. It appears they got all the cash they needed and maybe 33% more from the SPAC merger with FIII and the additional PIPE investment (etc.) to launch their Urban Delivery EV van this Fall (Sept-Oct) and then their Urban Utility EV truck-cab next year.
11.077M shares were redeemed, fully 44.3% of shares made available by the FIII SPAC, more than i thought, but still leaving MORE THAN SUFFICIENT CASH for ELMS when adding the $155M in PIPE funding.
SUBTOTAL = $139.2M from merger (out of $250M in FIII trust) + $155M PIPE funding, MINUS "transaction costs" of what i recall to be >$21M.
= TOTAL of approx. $271M CASH (someone might want to check my math).
Outstanding shares = 124,027,012 shares (less dilution than previously thought)
Fully diluted includes warrants to purchase 8,580,375 shares, plus several million earnout shares if future price-targets hit ($14 and $16).
It was probably the attack on SPACs, nasty sell-off of EV and tech sector, fear over chip shortage this past Spring, and other market fears that caused the substantial amount of share redemptions. But thank God and the business plan, ELMS only needs about $200M to launch both the Urban Delivery van and Urban Utility truck-cab over the next 15-18 months or so.
One thing this financial info means is that there is now less dilution for shareholders, so when ELMS becomes profitable, the EPS will be higher.
It also means they have less cash overall on the balance sheet to start with. But it's no big deal-- CEO Jim Taylor has clearly stated (as does the prospectus filed with SEC) that ELMS only needs $200M to accomplish everything they want to in the first 15-18 months of production of their 2 different EV vehicles (the Class 1 van and Class 3 truck cab).
Also, ELMS could always raise more money at presumably a much higher shareprice by then (and less share-dilution) if they want to generate a lot more cash for acquisitions and some of the other things that CEO Taylor has mentioned in some of the Zoom interviews we've seen this past Spring
