Electric vehicle pioneer Arrival has been put up for sale and secured up to $50 million in emergency funding to ensure it can continue until the end of the year.
The London firm, founded in 2015 and behind ‘microfactories’ for commercial electric vehicles, is now listed on New York’s Nasdaq exchange having achieved unicorn status thanks to backing from big-name institutional investors.
The bridge financing – which has a term of 120 days – comes from investors Antara and Highbridge. Arrival said it is intended to strengthen liquidity for the company and its subsidiaries as they explore a sales and marketing process for all or substantially all of their assets, or another strategic alternative transaction.
Arrival ended the first half of 2023 with approximately $43m of cash and cash equivalents. The H1 results include a decrease in administrative expenses of approximately $38m when compared to the first half of 2022, due to extensive restructuring.
The loss for the period was $155.7m, compared to a loss of $100m in the first half of 2022.
The firm has appointed Julian Nemirovsky, founder and president of restructuring specialist Long Castle Advisors Corp, as a non-executive director.