Embark Trucks (EMBK) to reduce workforce, explore strategic alternatives including liquidation
Embark Trucks (NASDAQ: EMBK) disclosed:
On March 1, 2023, the Board of Directors of Embark Technology, Inc. (the “Company”) approved a reduction in the Company’s current workforce by approximately 230 employees. The decision was based on cost-reduction initiatives intended to reduce operating expenses.
The Company currently estimates that it will incur charges of approximately $7 to $11 million in connection with the reduction in force, primarily consisting of notice period and severance payments, employee benefits, equipment costs and related costs, and noncash expenses associated with vesting of share-based awards. Additionally, the company expects to realize noncash expenses with respect to certain other share-based awards that cannot presently be estimated. The Company expects that the majority of these charges will be incurred in the first and second quarters of 2023, and that the reduction in force will be substantially complete by the end of the second quarter of 2023.
The charges the Company expects to incur are subject to assumptions, and actual charges may differ from the range disclosed above. In the future, there may also be incremental one-time charges associated with non-work force related cost savings actions.
Item 8.01
Other Events.
On March 1, 2023, the Board of Directors of the Company (the “Board”) approved a process to explore, review and evaluate a range of potential strategic alternatives available to the Company, including, without limitation, exploring alternative uses of the Company’s assets to commercialize its technology, additional sources of financing, as well as potential dissolution or winding up of the Company and liquidation of its assets. The Board’s decision comes following an extended evaluation by the Company of alternative markets in which to commercialize its technology as well as an exploration, performed with the assistance of a financial advisor, of a potential sale of the Company.
No assurance can be given that the Company’s exploration of strategic alternatives will result in any change in strategy. The Company does not expect to make further public comment regarding these matters unless and until the Board has approved a specific alternative or otherwise concludes its review of strategic alternatives.