Arrival taking action for additional liquidity
Arrival, a market disruptor aiming to manufacture an electric bus, has established a $300million equity financing line with Westwood Capital. The deal provides the company with access to additional liquidity, subject to certain conditions.
Additionally, Dr Yunseong Hwang has stepped down from the Arrival Board of Directors, effective immediately as of today (16 March 2023). Dr Hwang has served on Arrival’s Board of Directors since July 2021 and was a member of the Nominating and Corporate Governance Committee.
In January this year, Arrival appointed a new CEO, Igor Torgov and announced plans for a 50% cut to its global workforce. Former CEO, Denis Sverdlov, announced he was to step down from the role in November 2022.
The cutting in half of its global workforce to less than 800 employees by the end of March is in an effort to reduce the ongoing cash cost of operating the business to approximately $30m per quarter.
Last year, the business announced it was to halt development of its Bus project to focus on producing its Van.
“I have come into the business as CEO at a critical time” – Igor Torgov, CEO
“I have come into the business as CEO at a critical time,” said Igor Torgov, CEO. “Arrival has developed innovative technologies and know-how which position us strongly to address the considerable EV market opportunity. We have now taken important steps to help us take advantage of this opportunity, including raising additional capital as well as placing a sharper focus on the key US market and driving significant efficiency improvements.
“Looking forward, we will continue developing and validating our vehicles this year. We are also progressing with encouraging conversations with potential partners and investors to effect the next stage of the business plan – bringing Vans into production in Charlotte in late 2024.”
In Arrival’s full year preliminary unaudited financial results for 2022, the expected loss for the year is $998-$1,008 million, compared to a loss of $1,304 million in 2021. The full-year 2021 loss includes a one-time non-cash charge of $1,205 million1 (€1billion) associated with the merger of Arrival and CIIG.
Expected adjusted EBITDA loss for the year is $379-$380 million, compared to an adjusted EBITDA loss of $203 million in 2021.
Expected capital expenditure, including tangible and intangible purchases, for the year is $245 million, compared to $291 million in 2021.