Arrival secures emergency cash so it can sell itself

Arrival, the once buzzy EV startup that went public through a merger with a blank check company, is on its final death knell.

The company secured a $50 million bridge loan, funds that will keep it afloat long enough to explore a potential sale, according to a regulatory filing posted on Wednesday. Additional liquidity, with a term of 120 days, was provided by Antara Capital and Highbridge Capital Management.

It plans to use the bridge financing along with its remaining cash to find a buyer or other “strategic alternative transaction.” In other words, Arrival is given a strict framework to sell the company and pay the companies and people who owe it. This is the equivalent of lending someone $5 to buy enough gas to drive the car to the dealer and sell it.

The former arrival is a high-flying EV startup with an ambitious plan to use microfactories to produce electric buses, vans and even a car designed for Uber drivers. Those plans are now distant images in the rearview mirror.

In the past 15 months, the company has laid off workers four times, cut production targets and dropped Uber’s car and bus programs. It also failed to meet the Securities and Exchange Commission’s filing requirements, most recently missing another deadline to file the 2022 annual report.

Arrival executives are also looking for additional capital to keep the company alive. Reaching secured a $300 million lifeline in March 2023 to help it stay in business until the end of 2023 as it sought. additional dedicated funds to develop its XL delivery vans for the US market and begin production in Charlotte, North Carolina in 2024. The company also took other steps such as a reverse stock split to help it regain Nasdaq compliance.

None of those schemes succeeded.

Arrival said in a Wednesday filing that it ended the first half of 2023 with approx. $43 million in cash and cash equivalents. The company reported a net loss of $155.7 million in the first half of the year, compared to a loss of $100 million in the same period in 2022. Arrival is trying to reduce costs by restructuring effort that included laying off most of its employees. It also reduced capital expenditures to $4.1 million in the first half of 2023, compared to $198.9 million in the first half of 2022.

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