Arrival gets £40m bridge loan to find rescue buyer
Image credit: Arrival
Embattled mobility startup Arrival has secured a $50m (£40.3m) loan from its existing investors for a “potential sale or strategic alternative transaction”, according to a filing.
Alongside the filing, it has published the results for the first half of this year showing a loss of $155.7m (£125.5m), up from $100m (£80.6m) in the same period last year.
Its financials show a loss of $91.7m (£73.9m) before factoring in taxes, amortisation, depreciation and interest. Capital expenditure has also shrunk from $198.9m (£160.3m) in H1 22 to $4.1m (£3.3m) in H1 23.
The filing states: “The bridge financing, together with internally generated cash, is intended to strengthen liquidity for Arrival and its subsidiaries as they explore a sales and marketing process for all or substantially all of their assets or another strategic alternative transaction.”
The bridge loan gives Arrival 120 days to find a new buyer before it expires on March 12 next year.
The electric bus, van and car maker says it has saved roughly $4.6m (£3.7m) per month from slashing half of its workforce in January.
Previous attempts to rescue the business include a cancelled merger with special purpose acquisition company Kensington Capital Acquisition Corp.
In May, the Nasdaq issued a warning after it failed to submit its annual report.