EV-maker Arrival gets delisting warning from Nasdaq
Commercial electric vehicle company Arrival has gotten a warning from the Nasdaq Stock Market because its stock price is trading too low. The company issued a press release Thursday saying it received a notification at the start of the week that it was not in compliance with the Nasdaq's requirement to trade ordinary shares above $1.00 per share for 30 consecutive business days preceding the date of notification.
The news comes just a couple of weeks after Arrival said it would restructure its business for the second time in six months, shifting focus away from the U.K. market to the United States, where its first EV vans were supposed to be delivered. Job cuts are expected, although Arrival has not come out with specifics on that yet. The company said it plans to further "right-size the organization and cut cash intensive activities" to extend its cash runway, which was $330 million at the end of the third quarter.
Arrival has a grace period of 180 days, or until May 1, 2023, to meet the minimum bid requirement under Nasdaq's listing rules. The company just needs to maintain a closing bid price of $1.00 per share or higher for at least 10 consecutive business days to get out of the woods. If the company can't raise its share price by May, it may get an additional 180-day grace period if it effects a reverse stock split, or a stock merge, which consolidates the number of existing shares into fewer higher-priced shares.
Arrival's share price was $0.69 in after hours trading Thursday. The EV company went public via a $660 million special purpose acquisition deal with CIIG Merger in March last year. Arrival began trading at $22 and immediately started a slow descent to its current share price.
The company has had many struggles since its debut, including production delays, a class action lawsuit against the company and wide-scale layoffs.
In early October, Arrival finally got its first electric van off the production line at the company's microfactory in Bicester, U.K. It's not clear if Arrival will continue producing vehicles in Bicester. The company has said it plans to open a second factory in Charlotte, North Carolina next year.
Arrival told TechCrunch it would not comment at this time, but that it would have a business update on November 8.