Arrival to scrap plan to merge with SPAC (updated)

Kensington Capital Acquisition V

03/07/2023 21:47

(Adds shares and background in paragraphs 3-4)
       July 3 (Reuters) - British electric vehicle startup
Arrival SA  ARVL.O  said on Monday it would terminate plans to
merge with special purpose acquisition company (SPAC) Kensington
Capital Acquisition Corp V  KCGI.N .
    Arrival, whose shares fell more than 2% in extended trading,
had said in April it would merge with blank-check firm
Kensington Capital Acquisition Corp V to raise cash.
    EV firms have been experiencing a cash problem over the past
few months, as high costs related to production ramp-ups and
soaring inflation eat into their reserves.    
    Arrival said in May that it expects to report one or more
material weakness in internal control over financial reporting.
    

 (Reporting by Akash Sriram in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on Twitter;
+91-74116-87774;))