EV Startup Arrival Abandons Merger Deal, Shifts Focus to New Funding Strategy
Portfolio Pulse from Anan Ashraf
Electric vehicle startup Arrival SA (NASDAQ:ARVL) has terminated its proposed merger with Kensington Capital Acquisition Corp V and plans to pursue alternate funding. The merger would have provided Arrival with up to $283 million for the development of its XL van. Arrival ended Q1 with $130 million in cash. The company has engaged TD Cowen and Teneo Financial Advisory for its new funding strategy.
July 04, 2023 | 6:49 am
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Arrival's termination of its merger with Kensington Capital Acquisition Corp V and shift to a new funding strategy could impact its short-term financial stability and growth prospects.
Arrival's decision to terminate its merger with Kensington Capital Acquisition Corp V and pursue alternate funding could potentially impact its short-term financial stability. The merger would have provided Arrival with significant capital for the development of its XL van. The company's shift to a new funding strategy could introduce uncertainty and potential delays in its growth plans, which could negatively impact its stock price in the short term.
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