Kensington Capital Acquisition V in an 8-K said it has called off a merger deal with arrival, a manufacturer of ev delivery vans. The decision was mutual, according to the filing. The deal was announced less than three months ago.
Kensington at deal announcement had $283 million of cash in trust. Combined with Arrival's cash on the balance sheet as of Dec. 31, the combined company was expected to have approximately $468 million of pro forma cash to fund commercialization plans. Those included the build-out of Arrival's manufacturing facility in Charlotte, North Carolina.
Arrival has engaged TD cowen and Teneo Financial Advisory to help the company pursue alternative avenues that will provide additional liquidity.
Arrival originally went public in $5.4 billion deal with ciig merger, completed in March 2021.
Kensignton is coming up next month on the two-year anniversary of its IPO. Read more.
Source: Kensington Capital V and EV Maker Arrival Terminate Merger Agreement