British EV startup Arrival announces reverse stock split (updated)

Kensington Capital Acquisition V

11/04/2023 14:22

(Adds details, background)
       April 11 (Reuters) - British EV startup Arrival SA
 ARVL.O  said on Tuesday its shareholders, on April 6, approved
a reverse stock split at a ratio of one-for-fifty to gain
compliance with Nasdaq's listing regulations.
    Arrival's stock fell about 8% to $0.13 in trading before the
bell. The reverse stock split will be effective on April 14. 
    Last week Arrival said it would merge with blank-check firm
Kensington Capital Acquisition Corp V  KCGI.N .
    EV firms have been experiencing a cash crunch over the past
few months, as high costs related to production ramp-ups and
soaring inflation eat into their reserves.
    The special purpose acquisition company had about $283
million in cash held in trust, that will contribute to the
business, Arrival had said.

 (Reporting by Akash Sriram in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on
Twitter;))