EV Startup Arrival Warns On Material Uncertainties As Further Capital Needed
Arrival SA (NASDAQ: ARVL) has established a $300 million equity financing line with Westwood Capital.
The company also announced the convening of an Extraordinary General Meeting of shareholders to vote on several resolutions, including a reverse stock split and capital reduction.
"Arrival has developed innovative technologies and know-how which position us strongly to address the considerable EV market opportunity," said CEO Igor Torgov."
"We have now taken important steps to help us take advantage of this opportunity, including raising additional capital as well as placing a sharper focus on the key U.S. market and driving significant efficiency improvements."
Also Read: Arrival Sees Wider Q4 Loss Hit By $406M Impairment Charges
Arrival said it will achieve its target quarterly $35 million burn rate by the second half of 2023.
At the end of December, the company had $205 million of cash on hand.
Despite mitigating factors taken to date, the company noted there remain material uncertainties about its ability to continue as a going concern primarily due to the fact that further capital raises are required to fund the company to a break-even point.
Also See: Arrival Named Digital Leader Igor Torgov As CEO; To Slash 800 Jobs To Control Costs
Price Action: ARVL shares are trading lower by 13.67% at $0.18 on the last check Monday.
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This article EV Startup Arrival Warns On Material Uncertainties As Further Capital Needed originally appeared on Benzinga.com
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