Denis Sverdlov, the founder of British startup Arrival, has planned to sell 40 million shares of the electric truck and bus maker amid the threat of bankruptcy.
According to 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 the stake of Sverdlov.
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 their own estimates, may not be enough to finance the business for the next 12 months. In addition, Arrival posted a loss of $310.3 million in the third quarter, compared to $30.6 million in the same period a year earlier.
- According to Bloomberg, as of April this year, Sverdlov himself was still a dollar billionaire, and now his fortune is estimated at $195 million. After the March 2021 IPO, the Arrival founder’s fortune was estimated at $11 billion. 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 producing an electric pickup truck to start generating revenue.
- In early November, Arrival received a warning from Nasdaq about a possible delisting of the company’s shares.
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