The UK's Tevva and ElectraMeccanica Announce Proposed Merger Agreement

Tevva, a UK electric medium- and heavy-duty commercial vehicles manufacturer, and ElectraMeccanica have entered into a definitive agreement to merge. The proposed transaction is intended to accelerate their combined ability to capture the growing opportunity in commercial electric trucks.

Tevva’s existing 110,000-square-foot EV manufacturing facility in Tilbury, UK, would be complemented by ElectraMeccanica's recently-commissioned 235,000-square-foot facility in Mesa, Arizona, which is expected to enable the combined company to scale its production to serve the UK, European and US markets.

The combined company expects to have a cash balance of approximately $70 - 80 million, with debt of approximately $26 million.

At closing of the proposed transaction, the combined company will operate as Tevva, Inc., and is expected to be domiciled in Delaware.

It is anticipated that the combined company and its shares will trade on The Nasdaq Capital Market under the ticker symbol TVVA.

The combined company is expected to benefit from the acceleration of Tevva’s US market entry, supported by the complementary platform, team, and assets of ElectraMeccanica, in addition to anticipated long-term reductions in material costs.

Tevva recently commenced deliveries of its 7.5t battery-electric truck to commercial fleet customers focused on urban delivery.

It is expected that Susan E. Docherty, CEO of ElectraMeccanica, will become CEO of the combined company.

ElectraMeccanica is a designer and assembler of environmentally efficient EVs.

David Roberts, current Director of Tevva and anticipated incoming Executive Chairman, says: “Since Tevva's founding more than ten years ago, we have focused our engineering and product development capabilities on developing a portfolio of zero-emission commercial vehicles that have generated significant customer interest. Our vehicles have undertaken more than 300,000 miles of testing and operating experience in real-world conditions by demanding fleet operators. We are excited to merge with ElectraMeccanica and accelerate the growth of the combined company. Throughout the process, we have been impressed with ElectraMeccanica's management team and strongly believe that ElectraMeccanica’s complementary assets, skills and capital will further enhance our advantages in this large and rapidly growing market.”

Susan Docherty, CEO of ElectraMeccanica, adds: “We are incredibly excited to partner with Tevva given their unique engineering expertise in an essential segment of a large and growing market. We believe this is the right time and Tevva is the right partner with which to pivot from consumer vehicles to commercial vehicles and respond to commercial fleet customer demand for superior, reliable and cost-efficient trucks. The complementary operations of the two companies and our similar values and mission give me complete confidence we can jointly create significant shareholder value. Tevva is extremely well positioned in the U.K. and European market and our world-class manufacturing facilities, combined experienced senior executive team and balance sheet will help take our combined company to the next level.”

Tevva has designed a range of electric vehicles across the medium- to heavy-duty commercial vehicle space, and already has vehicles in operation on public roads with customers.