Investing
Arrival to convert Antara’s $20 million loan into equity
© Reuters. An engineer at electric van maker Arrival watches as autonomous robots move parts for a prototype vehicle at the company’s factory in Bicester, Britain, May 10, 2023. REUTERS/Nick Carey
(Reuters) – Arrival said on Tuesday it will convert shareholder hedge fund Antara Capital Master Fund LP’s $20 million loan into equity, a move that would help the British electric-vehicle startup lower its debt load.
According to the deal, Antara will not be allowed to sell more than 10% of the traded volume of Arrival’s ordinary shares, it receives in the exchange, on any given trading day. Antara has a 1.69% stake in Arrival, according to Refinitiv data.
After the exchange, Arrival will still have about $300 million of principal amount in convertible notes that can be converted into equity.
Cash-strapped Arrival, which saw its cash and cash equivalents slump at the end of the first quarter, has been exploring options, including laying off 50% of its employees, to tackle a fund crunch it has been facing.
EV firms have been experiencing a cash problem over the past few months, as high costs related to production ramp-ups and soaring inflation eat into their reserves.
Arrival in April effected a 1-50 reverse stock split to regain compliance with Nasdaq’s listing rules and said it will merge with blank-check firm Kensington Capital Acquisition Corp V to raise cash.
Read the full article here
-
Passive Income7 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles7 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles6 days ago
How to Be Unapologetically You and Why It Matters
-
Investing7 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Investing5 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles7 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Side Hustles6 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Side Hustles5 days ago
Mark Zuckerberg Is Now Second Richest Person in the World