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a)
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Former independent registered public accounting firm
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i.
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On
September 27, 2018, ElectraMeccanica Vehicles Corp. (the
“Company”) appointed KPMG LLP (“KPMG”) as
its independent registered public accounting firm. KPMG replaced
Dale Matheson Carr-Hilton Labonte LLP (“DMCL”) who had
been the Company’s independent registered public accounting
firm. were the Company’s statutory auditor till the Annual
General meeting held on June 29, 2016. KPMG accepted the
engagement.
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ii.
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Simultaneously
with the engagement of KPMG, the Company terminated DMCL as its
independent registered public accounting firm.
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iii.
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Each
report of DMCL on the Company’s consolidated financial
statements for the financial years ended December 31, 2017 and 2016
contained a statement of substantial doubt about the
Company’s ability to continue as a going concern, but
otherwise did not contain an adverse opinion or a disclaimer of
opinion, and were not qualified or modified as to uncertainty,
audit scope or accounting principles.
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iv.
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During
the financial years ended December 31, 2017 and 2016, and through
September 7, 2018, there were no (a) disagreements with DMCL
on any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which
disagreements, if not resolved to DMCL’s satisfaction, would
have caused DMCL to make reference to the subject matter thereof in
connection with its reports for such years; or (b) reportable
events that would be required to be described under Item 16
F(a)(1)(v) of Form 20-F in connection with the Company’s
annual report on Form 20-F for each fiscal year mentioned
above.
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v.
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On
October 2, 2018, the Company filed a “Notice of Change of
Auditor” on the System for Electronic Document Analysis and
Retrieval, the electronic filing system for the disclosure
documents of public companies and mutual funds across Canada. A
copy of such notice is filed herewith as Exhibit 99.1.
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v.
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The
Company provided DMCL with a copy of “Notice of Change of
Auditor” referenced above and requested from DMCL a letter
addressed to the British Columbia Securities Commission indicating
whether it agrees with such disclosure. A copy of DMCL’s
letter is filed herewith as Exhibit 99.2.
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b)
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New independent registered public accounting firm
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i.
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The
Company engaged KPMG as its new independent registered public
accounting firm as of September 27, 2018. During the two most
recent financial years ended December 31, 2017 and 2016 and through
September 27, 2018, the Company has not consulted KPMG regarding
either (i) the application of accounting principles to a
specified transaction, either completed or proposed; or the type of
audit opinion that might be rendered on the Company’s
financial statements, and neither a written report was provided to
the Company or oral advice was provided that KPMG concluded was an
important factor considered by the Company in reaching a decision
as to the accounting, auditing or financial reporting issue; or
(ii) any matter that was either the subject of a disagreement,
as that term is defined in Item 16F(a)(1)(iv) of 20F and the
related instructions to this item, or a reportable event as that
term is described in Item 16F(a)(1)(v) of 20F.
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ii.
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The
Company provided KPMG with a copy of “Notice of Change of
Auditor” referenced above and requested from KPMG a letter
addressed to the British Columbia Securities Commission indicating
whether it agrees with such disclosure. A copy of KPMG’s
letter is filed herewith as Exhibit 99.3.
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