(Reuters) – British EV startup Arrival SA said on Tuesday its shareholders, on April 6, approved a reverse stock split at a ratio of one-for-fifty to gain compliance with Nasdaq’s listing regulations.
Arrival’s stock fell about 8% to $0.13 in trading before the bell. The reverse stock split will be effective on April 14.
Last week Arrival said it would merge with blank-check firm Kensington Capital Acquisition Corp V.
EV firms have been experiencing a cash crunch over the past few months, as high costs related to production ramp-ups and soaring inflation eat into their reserves.
The special purpose acquisition company had about $283 million in cash held in trust, that will contribute to the business, Arrival had said.
(Reporting by Akash Sriram in Bengaluru; Editing by Nivedita Bhattacharjee)
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Source: The Print
