Arrival Announces Redemption of Warrants
Arrival (NASDAQ: ARVL) announced the redemption of all outstanding Public Warrants effective July 19, 2021, following a sustained share price above $18.00. Each warrant will be redeemed at $0.01 unless exercised before the deadline. If all 12,937,493 warrants are exercised, the company could generate approximately $148.8 million. Unexercised warrants will be void post-redemption. This move aims to streamline capital structure as Arrival progresses in its mission to innovate electric vehicle production via its Microfactories.
- Potential gross proceeds of approximately $148.8 million if all warrants are exercised.
- The stock price maintained above $18.00 for the required trading period, indicating market confidence.
- Public Warrants will cease trading on NASDAQ post-redemption, potentially reducing liquidity.
- No guaranteed exercise of warrants, which may limit capital influx.
LONDON and CHARLOTTE, N.C., June 18, 2021 (GLOBE NEWSWIRE) -- Arrival (the “Company”; Ordinary Shares - NASDAQ: ARVL; CUSIP No. L0423Q 108; Warrants - NASDAQ: ARVLW; CUSIP No. L0423Q 116) announced today that the Company has elected to redeem, at 5:00 p.m. New York City time on July 19, 2021 (the “Redemption Date”), all of the Company’s outstanding warrants (“Public Warrants”) that were issued under the Warrant Agreement dated as of December 12, 2019 by and between CIIG Merger Corp. (“CIIG”) and Continental Stock Transfer & Trust Company, as warrant agent, as a part of the units sold in CIIG’s initial public offering (“IPO”), which Public Warrants were assumed by the Company in connection with the business combination between CIIG, the Company and ARSNL Merger Sub Inc.
Each Public Warrant will be redeemed by the Company for
Registered holders of Public Warrants will have until 5:00 p.m. on July 19, 2021 to exercise their Public Warrants. Each Public Warrant entitles the holder thereof to purchase one Ordinary Share at a price of
As a result of the redemption, the Public Warrants will cease to be traded on the NASDAQ effective July 20, 2021.
As of the date hereof, the Company has 12,937,493 Public Warrants outstanding. If all such currently outstanding Public Warrants are exercised prior to the Redemption Date, the Company will issue an aggregate of 12,937,493 Ordinary Shares and receive potential gross exercise proceeds of approximately
Beneficial holders desiring to exercise their Public Warrants should contact the brokerage firm holding their Public Warrants immediately to process their exercise and avoid redemption. Brokers will likely have an earlier deadline for beneficial holders to exercise their Public Warrants than the deadline for registered holders set forth above.
The Ordinary Shares underlying the Public Warrants have been registered by the Company under the Securities Act of 1933, as amended, and are covered by a registration statement filed on Form F 1 with, and declared effective by, the Securities and Exchange Commission (Registration No. 333 254885).
This release is neither an offer to sell nor a solicitation of an offer to buy any securities of the Company.
About Arrival
Arrival (NASDAQ: ARVL) is reinventing the automotive industry with its entirely new approach to the design and assembly of electric vehicles. Low CapEx, rapidly scalable Microfactories combined with proprietary in-house developed components, materials and software, enable the production of best in class vehicles competitively priced to fossil fuel variants and with a substantially lower total cost of ownership. This transformative approach provides cities globally with the solutions they need to create sustainable urban environments and exceptional experiences for their citizens. Arrival is a global business founded in 2015 and headquartered in London, UK and Charlotte, North Carolina, USA, with more than 1,900 global employees located in offices across the United States, Germany, the Netherlands, Israel, Russia, and Luxembourg. The company is deploying its first four Microfactories in North Carolina, USA, South Carolina, USA, Madrid, Spain, and Bicester, UK.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding the amount of Ordinary Shares to be issued and the proceeds to be received in connection with the exercise of Public Warrants prior to the Redemption Date. 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 document, including, but not limited to, a lower number of holders of Ordinary Shares exercising their Public Warrants prior to the Redemption Date. The foregoing list of factors is not exhaustive. Readers are cautioned not to put undue reliance on forward-looking statements, and Arrival assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Arrival does not give any assurance that Arrival will achieve its expectations.
Media Contacts
Media
pr@arrival.com
Investors
ir@arrival.com
FAQ
What is the Redemption Date for Arrival's Public Warrants?
What happens to the Public Warrants if not exercised by the deadline?
How much could Arrival potentially raise from the exercise of Public Warrants?
Why is Arrival redeeming the Public Warrants?
