EV maker Arrival SA ARVL said on Monday that it has been notified by Nasdaq about an upcoming suspension in the trading of its securities and subsequent delisting.
What Happened: Nasdaq, in the letter received by the company on Jan. 26, said that the company’s securities would be suspended on Jan. 30.
Last week, Sky News reported that Arrival is in discussions with EY to step in as administrator should the company fail to acquire necessary rescue funds. The UK-based company, once harboring grand plans to revolutionize the global electric vehicle production industry, is seemingly focusing on contingency planning.
While it is unlikely that Arrival will raise sufficient funds, there is still a possibility, the report said, while adding that it is presently unclear as to how long Arrival's current cash reserves would last.
See Also: Best Auto Manufacturer Stocks Right Now
Why It Matters: Arrival ended the first half of 2023 with approximately $43 million of cash and cash equivalents. Loss for the half year was $155.7 million, compared to a loss of $100 million in the corresponding half of 2022.
The company presently has a market cap of $13.6 million with stock dropping nearly 97.5% over the past year. The company was valued at $5.4 billion on the day it became public in March 2021 through a SPAC merger with CIIG Merger Corp.
Price Action: On Monday, Arrival shares closed 33.7% lower at $0.49 in the regular session, according to Benzinga Pro data.
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