Arrival, an EV company gets $300 million from Westwood Capital
Electric vehicle startup Arrival got a $300 million equity financing line from Westwood Capital and said it seeks to slow its cash-burn rate, as the British firm looks to start U.S. production of its van in late-2024.
Arrival expects to achieve its target of quarterly cash-burn rate of $35 million by the second half of 2023, as layoffs and other cost-cut measures take effect. At the end of 2022, the company had about $205 million in cash and cash equivalents.
Arrival said the additional capital will provide the company with access to more liquidity and that the infusion will fund the business into late-2023.
The capital raised, however, will not provide for investments in production of its van in its Charlotte, North Carolina facility and the company said it was kicking off fundraising efforts to fund the U.S. production plan.