Business Combination Agreement with Kensington Capital Acquisition Corp. V to Provide Additional Manufacturing Expertise and Up to $283 Million From Cash in Trust
First Quarter Ending Cash Position of $130 Million
LUXEMBOURG, May 15, 2023 (GLOBE NEWSWIRE) -- Arrival (NASDAQ:ARVL) ("Arrival" or the "Company"), inventor of a unique new method of design and production of electric vehicles, today provided business updates for the first quarter ended March 31, 2023.
"In the first quarter, our team worked diligently to optimize costs and support our business plan as we develop our purpose-built XL Van for production in 2024," said Arrival CEO Igor Torgov. "We ended the quarter with $130 million cash and have significantly reduced our operating costs on a go-forward basis to extend our runway for 2023. In April we announced a proposed business combination with Kensington Capital, which could bring up to $283 million of trust assets to the Company (subject to redemptions). The merger with Kensington and their extensive manufacturing and automotive industry expertise validates Arrival's strategy to bring a purpose-built Class 4 last-mile delivery vehicle to the U.S. market. Our top priority going forward is to facilitate a successful deal close later this year."
First Quarter 2023 Cash and Recent Business Updates
- Cash and cash equivalents of approximately $130 million as of March 31, 2023
- In Q1, the change in cash of $75 million included a $25 million receipt from Antara and use of cash of approximately $60 million for restructuring-related costs and legacy supplier payments.
- Advanced U.S. commercialization plans through a business combination with Kensington Capital Acquisition Corp. V. This transaction will allow Arrival to access up to $283 million of cash (subject to redemptions) held in trust for the build-out of the Company's expected Charlotte, North Carolina factory for continued development of Arrival's XL Van.
- Built 3 L Vans at the Bicester factory with 5 more in progress and accumulated over 90,000 kilometers of on-road test driving. Build and road testing of the L Vans has proven to be a valuable source of insights as the Company finalizes manufacturing methods and designs for the XL Van.
- Continued development of the XL Van design process, with design release targeted for later this year.