Arrival seeks additional funding to support struggling electric van production
【Summary】Struggling electric van-maker Arrival is seeking new advisers to help secure rescue funding as it faces delisting from the Nasdaq. The company is working with Jefferies to find a sale or refinancing solution after previous efforts with restructuring adviser Alvarez & Marsal. Arrival, which has not yet achieved commercial production, went public in 2021 and needs at least $500m of additional funding.
A British-based company with ambitions of becoming a global pioneer in electric vehicle manufacturing has enlisted the help of new advisers to secure rescue funding. Arrival, which is at risk of being delisted from the Nasdaq stock exchange, is now working with Jefferies to stay afloat. This move comes after a previous process involving Alvarez & Marsal, the restructuring adviser, failed to yield results. A&M had been working on contingency plans for Arrival to call in administrators.
The urgency for a sale or long-term financing solution is evident, and bondholders have been considering whether to provide sufficient funding to support an expedited sale process. Arrival's shares faced the threat of delisting by 9 November after failing to submit its 2022 annual report with US financial regulators. The company plans to appeal this decision through a hearing request.
Arrival was among several electric vehicle companies that took advantage of investor demand during the technology boom, raising significant funds at high valuations. It went public in March 2021 through a merger with CIIG Merger Corp, a special purpose acquisition company (SPAC) led by Peter Cuneo, the former Marvel CEO. At the time of its initial trading, Arrival was valued at approximately $5.4 billion.
The company received backing from notable investors such as BlackRock, Hyundai, Kia, and UPS. Arrival aimed to target commercial customers rather than ordinary motorists, capitalizing on the growing demand for electric vehicles. However, it has faced challenges in bringing its vehicles into commercial production and has been forced to downsize its workforce, including senior management positions.
Arrival's stock has experienced a significant decline of over 94% in the past year, resulting in a market capitalization of just over $16 million. In an attempt to secure new capital, the company entered into a second SPAC deal with Kensington Capital Acquisition Corp V, which would have injected additional funds. However, this agreement was terminated in July. Arrival has not responded to inquiries for comment.
-
Electric Nissan Juke: A Sneak Peek at the Future
-
Electric cars set to become more affordable
-
Major creditor in talks to acquire Volta Trucks
-
Chinese EV maker's valuation close to Tesla
-
EVs' Limited Success in the U.S., Excluding Teslas
-
Toyota's Dedication to Quality Shines in Century Bolt Tightening Process
-
Tragic Accident: Bentley's Speed Questioned in Niagara Falls Deaths
-
Accelerating Car Development with Mazda-backed AI Firm
- BMW Group delays agency sales
- Nissan's £1bn UK Electric Car Investment
- 2024 Mitsubishi Triton: Higher Price
- Former Ford fleet director passes away
- Forecaster reduces 2027 electric vehicle sales forecast
- 2024 Mitsubishi Triton price increase
- Carmakers overwhelm market with fresh electric vehicles
- Bentley driver's 'medical emergency' leads to $300,000 supercar crash at Canadian border
- Soaring Potential: The Future of the 'Chinese Tesla'
- Hybrids: Toyota's Current Success