Electric vehicle (EV) startup Arrival SA (NASDAQ:ARVL) is eyeing a merger with Kensington Capital Acquisition Corp V (NYSE:KCGI).
What Happened: Facilitating a successful deal close with Kensington later this year is "top priority" for Arrival, the company said on Monday.
"A normal merger process does take anywhere from, I would call it three months or more," said CFO John Wozniak. "And we're just going to work as hard as we can to get this closed as quickly as we can."
Giving a rough timeline, Wozniak said that the SEC review will take a couple of months, and 30 days from the day of review completion, a shareholder vote will be conducted.
Why It Matters: The proposed deal with Kensington Capital was announced in April. The merger will allow Arrival access to up to $283 million of cash to build the expected North Carolina factory for the development of the company's XL van. The van qualifies for IRA tax credit up to $40,000 and hence would be a "very strong contender for adoption" by U.S. fleet operators, said CEO Igor Torgov.
Meanwhile, Kensington has until Aug. 17 to finalize the deal, otherwise it would be required to liquidate per a regulatory filing on Monday.
Kensington plans to complete the business combination with Arrival "prior to the mandatory liquidation date."
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Next: Tesla Marks Electrifying Achievement As Global Fleet Crosses 100B Miles