Arrival (ARVL), whose stock trades on the Nasdaq as ARVL, is an electric vehicle company based in Luxembourg. Arrival first went public in March 2021 via a merger with the special purpose acquisition company (“SPAC”) CIIG Merger Corp. On April 13, 2023, Arrival stock’s value reached $0.11 per share.
In February 2021, Arrival made the following disclosure in its prospectus:
“Arrival has incurred losses in the operation of its business related to research and development activities since its inception. Arrival anticipates that its expenses will increase and that it will continue to incur losses in the future . . . Arrival expects the rate at which it will incur losses to be significantly higher in future periods . . . .”
Since going public, Arrival stock has steadily decreased in value, reaching as low as $0.11 per share on April 13, 2023. On October 31, 2022, Arrival received notification that it failed to meet the requirements to be listed on the Nasdaq Stock Exchange because its stock value was below $1.00 per share for 30 consecutive business days. Arrival was given 180 days to meet the minimum bid price of $1.00 per share in order to stay listed.
In order to remain listed on the Nasdaq, on April 14, 2023, Arrival executed a 1 for 50 reverse stock split, which means that every 50 outstanding shares of Arrival would be converted into just 1 share of Arrival. This means that if an investor held 100 shares of Arrival stock on April 13, 2023, they would own 2 shares of Arrival stock on April 14, 2023.
This reverse stock split does not seem to have fixed Arrival’s troubles. At market open on Friday, April 14th, 2023, Arrival was trading at $5.39 per share, and by market open the following Monday, April 17th, 2023 Arrival’s stock price had decreased to $4.14 per share.
In addition to this reverse stock split, Arrival announced in early April 2023 that they would be merging with a second SPAC, Kensington Capital Acquisition Corp. V. This planned second merger with a SPAC reflects Arrival’s need for cash and is not a positive sign for a company that is already struggling to meet the Nasdaq’s required threshold of $1.00 per share.
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Based on our experience, we believe that some investors may have been the victims of broker misconduct and investment fraud related to the recommendation of Arrival. If a broker or investment advisor recommended you purchase Arrival stock, contact Peiffer Wolf immediately for a FREE Consultation 585-310-5140.
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If you believe you were a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors.
Peiffer Wolf is currently investigating claims against brokers and investment advisors for recommending the purchase of Arrival stock. If you have Arrival in your portfolio, Contact Peiffer Wolf today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule a FREE Case Evaluation.