Arrival charging up with new $50M fundraise

CHARLOTTE – Arrival, the United Kingdom-based electric vehicle company that operates its North American headquarters in Charlotte and is in the process of pivoting its focus to production of its electric vans for U.S.-based customers, has raised a significant amount of capital to better position the company moving forward.

According to a statement released this week by the company, it has closed on $50 million in equity funding through the sale of new common stock.

“Today’s agreements are an important step in the fund-raising process to support Arrival’s business plan and are in the best interests of all of our stakeholders,” said John Wozniak, the company’s chief financial officer. “It delivers $50 million of new capital and significantly strengthens our balance sheet by reducing debt by 38 percent.”

That capital will come in two $25 million infusions, the first of which will grant the investor, Antara Capital Master Fund LP, 125 million shares of new equity, according to the statement.

In addition, an additional $25 million will be invested “from time to time” in between May 15, 2023 and June 30, 2023 at a price per share of not more than $0.20.

For reference, the closing price of one share of the company’s stock was $0.33 on February 17, 2023.

According to a statement, this $50 million in equity funding will “support the ongoing development of Arrival’s products.”

Arrival continues restructure to bring EV products to US market – with $330M cash-in-hand

Antara is converting nearly $122M of debt to equity position, as well

Further, Antara Capital Master Fund LP has agreed to convert existing convertible notes that the fund holds into company stock shares.

The fund will convert $121.9 million worth of notes for 219,420,000 ordinary shares.

That move will reduce the outstanding convertible notes by 38% and the company’s future annual cash interest expenses will be reduced by about $4.2 million, according to a statement.

“We are delighted by the confidence that Antara has demonstrated in the exciting technologies we have developed to unlock the significant potential in the EV market,” said Wozniak in the statement.

Earlier this year, a new CEO took the helm at the company, as it announced further plans to cut workers as it pivoted to focus on the United States market.