Arrival Drives Towards The Brink

Summary:

  • Arrival’s quarterly cash burn is abnormal for a company of its size and its current cash position is not sufficient for up to a year of operations.
  • The EV upstart has had to execute a 1 for 50 reverse stock split and has proposed another merger with a blank check company to avert collapse.
  • The transaction could see Arrival gain access to $283 million in cash from the SPAC’s trust. However, redemptions are likely to be significant.

South End and Uptown Charlotte - Aerial

halbergman/E+ via Getty Images

Arrival’s (NASDAQ:ARVL) visceral struggle for survival has seen the EV upstart execute a 1 for 50 reverse stock split, jettison plans to build a microfactory in the UK, and launch a second merger with a

Chart
Data by YCharts

Arrival Initial SPAC Guidance

Arrival 2021 SPAC Presentation


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *