LUXEMBOURG, Oct. 20, 2022 (GLOBE NEWSWIRE) -- Arrival (NASDAQ: ARVL), inventor of a unique new method of design and production of electric vehicles (EVs) by local Microfactories, today announced a proposal that would see the company refocus its resources on the US market while further advancing its enabling technologies.
Arrival has achieved critical milestones this year including Bus and Van certification in Q2 and produced the first production verification L Van in the Bicester Microfactory in Q3 which proves a vehicle can be assembled in a microfactory.
In August, the Company announced plans to use existing cash on hand of $513M plus funds available through a $300M At the Market (ATM) Platform to deliver the first vehicles to UK customers this year, invest in hard tooling and launch the Charlotte microfactory next year. At the end of Q3, the Company had existing funds of approximately $330M cash on hand and due to the current share price and daily trading volumes, has not found the ATM to be a reliable source of capital. Scaling production in the Bicester microfactory requires significant further investment in hard tooling and working capital and the Company has determined that the benefits of such an investment would be best directed to the US market.
As a result, today the Company announced a plan to restructure its business to focus resources on a family of Van products for the US market as well as its enabling technologies - including core components, composite materials, mobile robotics, and software-defined factories.
The Company will continue to produce a small number of Vans in Bicester to optimize microfactory processes and support trials with customers.
The major factors in the Company’s decision to shift focus to developing its US business included the tax credit recently announced as part of the Inflation Reduction Act - expected to offer between $7,500 to $40,000 for commercial vehicles, the large addressable market size, and substantially better margins.
The business plans to raise capital to fund the commercialization of these vehicle programs in the US and is exploring all funding and strategic opportunities needed to bring the Vans designed for the US into production at the company’s second Microfactory in Charlotte, North Carolina.
In order to extend the company’s cash runway, Arrival plans to further right-size the organization and cut cash intensive activities while continuing to advance its core technologies. The result of these proposals is expected to have a sizable impact on the Company’s global workforce, predominantly in the UK.
A business review will be provided during Arrival’s third quarter 2022 financial results webinar on November 8, 2022.
Arrival's mission is to master a radically more efficient New Method to design, produce, sell and service best ever electric vehicles, because we want a world where cities are free from fossil fuel vehicles. Our in-house technologies enable a unique approach to produce vehicles using rapidly-scalable, local Microfactories. Arrival (NASDAQ: ARVL) is a joint stock company governed by Luxembourg law.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the products offered by Arrival and the markets in which it operates. Such statements are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995 and are based on management’s belief or interpretation of information currently available. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release.