Arrival (ARVL) receives non-compliance letter from Nasdaq because its stock share price is too low
EV startup Arrival announced that it has received a non-compliance letter from the Nasdaq Stock Market LLC, informing the company that the closing bid price has been below the minimum $1.00 per share for at least consecutive 30 days. Arrival now has until May to meet the minimum bid requirement to avoid being delisted on the stock market.
Arrival ($ARVL) is an EV start-up focused on delivering urban-centric mobility, which originally consisted of grand vehicle plans that included an all-electric passenger bus, a delivery van, and a rideshare-specific Arrival Car designed alongside Uber.
Shortly after going public via SPAC merger on the Nasdaq Stock Market in March of 2021, Arrival’s share price has trended downward to the point we see it at today – well below $1.00 per share. These financial woes were a factor in the startup’s announcement in July that it would be reorganizing its business to focus on solely on Arrival Van production.
That revised strategy included a complete halt to Arrival Bus and Car development to focus on the Van, which completed its first successful build using Arrival’s microfactory model in September. Even with a production proof of concept, Arrival has had to pivot once again to get its Van over the finish line.
A few weeks ago, Arrival announced plans to focus on US production of the Van at its microfactory in North Carolina, hoping to take advantage of federal EV tax credits under new terms in the Inflation Reduction Act. However, the shift overseas will subsequently involve “a sizable impact on the company’s global workforce, predominantly in the UK.” As the company is publicly exploring funding opportunities to keep going, its recent stock has represented its struggles.
As a result, the Nasdaq has issued a warning of delisting Arrival, but the startup has time to get its shares back up.
Arrival has until May 2023 to get stock up, possibly longer
Arrival confirmed the receipt of the non-compliance letter from the Nasdaq Stock Market in a press release today, outlining the reasoning behind the notice and its options going forward. There is no immediate effect in the listing of Arrival’s shares.
Because Arrival’s closing bid price of ordinary shares has sat below $1.00 for at least 30 consecutive days, the Nasdaq was required to alert the startup of the failure to comply. However, pursuant to Nasdaq Listing Rule 5810(c)(3)(A), Arrival has been given a grace period of 180 days, or until May 1, 2023, to meet the minimum bid price requirement.
Arrival’s stock price fell below $1.00 per share on September 19 and has not been able to bounce back yet. If the startup’s closing bid price per share reaches a buck or higher for ten consecutive days, Nasdaq will close the compliance matter. If it cannot meet these requirements, Arrival could be delisted from the Nasdaq Stock Market entirely.
Should Arrival not eclipse $1.00 per share by May 1, there is a chance it could qualify for an additional 180-day grace period, but only if it applies to transfer the listing of the company shares to the Nasdaq Capital Market. Per the release:
To qualify, the Company (Arrival) would be required to meet the continued listing requirement for the market value of its publicly held Shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the minimum bid price requirement, and provide written notice of its intention to cure the minimum bid price deficiency during the second compliance period by effecting a reverse stock split, if necessary. If the Nasdaq staff determines that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible for such additional compliance period, Nasdaq will provide notice that the Shares will be subject to delisting.
Arrival states that it intends to monitor its closing bid price during this initial grace period and “will consider its options” in order to regain Nasdaq minimum price requirements. We will check in on this one again in our EV stock report at the end of November.
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On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.
Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Learn more by clicking here.
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Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.
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The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.
The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.
These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.
The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.
Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:
Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.
In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.
The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.
Read more: The US reaches milestone of 200,000+ public EV charging ports
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Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.
The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.
During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.
Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.
The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.
Kia’s new EV4 is now testing in the US
Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.
The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.
Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).
Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.
The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.
Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.
We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?
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