Arrival founder plans to sell about 10% of the company’s shares amid the threat of bankruptcy


Denis Sverdlov, the founder of the British startup Arrival, has planned to sell 40 million shares of the manufacturer of electric trucks and buses amid the threat of bankruptcy.

Arrival founder plans to sell about 10% of the company’s shares amid the threat of bankruptcy

How informs Bloomberg, in November, the Luxembourg fund Kinetic, through which Sverdlov owns a 75.7% stake in Arrival, doubled the offer to sell securities to 40 million units, which is equivalent to 10% of Sverdlov’s stake.

This came after Arrival on November 8 announced a possible shortage of funds. As of the end of September, the company had about $330 million left.

This money, according to its own estimates, may not be enough to finance the business over the next 12 months. In addition, Arrival posted a loss of $310.3 million for the third quarter, up from $30.6 million in the same period a year earlier.

  • According to Bloomberg, back in April of this year, Sverdlov himself remained a dollar billionaire, and now his fortune is estimated at $195 million. After the IPO in March 2021, the fortune of the founder of Arrival was estimated at $11 billion. Delays in production led to a drop in the value of the company’s shares.
  • In the summer of 2022, Arrival suspended work on the electric bus and electric car. The company planned to cut costs by a third and focus on the production of an electric van in order to start generating income.
  • In early November, Arrival received a warning from Nasdaq about a possible delisting of the company’s shares from the stock exchange.

Cover photo: Unsplash

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Source: RB.RU by rb.ru.

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