'Electric Van Maker Arrival Lurches Closer To Insolvency' - SkyNews
Portfolio Pulse from Benzinga Newsdesk
Arrival, an electric van maker listed on Nasdaq, is nearing insolvency and in talks with EY for potential administration if it fails to secure rescue funding. The company's shares have dropped by 95% over the past year, and it faces delisting due to non-compliance with Nasdaq's listing rules. Arrival went public via a SPAC merger in 2021 with a valuation of $5.4bn but now has a market cap of just over $20m. It has not yet started commercial production of its vehicles and has been reducing its workforce.
January 22, 2024 | 4:33 pm
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Arrival is facing potential insolvency and is in discussions with EY about acting as administrator if rescue funding is not secured. The company's stock has plummeted by 95% over the last year, and it risks being delisted from Nasdaq.
The news of potential insolvency and administration by EY indicates a high level of financial distress for Arrival, which is likely to have a negative impact on investor confidence and the stock price in the short term. The 95% drop in share value over the past year and the risk of delisting further exacerbate the negative outlook for ARVL.
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