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Summary
- British electric vehicle (EV) Arrival Ltd took a step closer to its public listing after blank check company CIIG Merger Corp (NASDAQ:CIIC) shareholders approved their reverse merger plans.
- Arrival had entered a definitive agreement to merge with CIIG Merger Corp back in November 2020.
- Once the deal is completed, stocks of Arrival Ltd will begin trading on the Nasdaq exchange under the ticker of ‘ARVL’ on Thursday, March 25.
British electric vehicle (EV) Arrival Ltd took a step closer to its public listing after blank check company CIIG Merger Corp (NASDAQ:CIIC) announced last Friday (March 19) that its shareholders have approved their reverse merger plans.
Arrival had entered a definitive agreement to merge with CIIG Merger Corp back in November 2020. Following the announcement, there had been reports about the special public acquisition company (SPAC) being probed for regulatory violations regarding the merger.
Let’s dive into the details of the Arrival-CIIG merger plans.
Arrival IPO Date
If all goes as planned, Arrival’s merger deal with CIIG is expected to be close on Wednesday, March 24.
Once the deal is completed, stocks of Arrival Ltd will begin trading on the Nasdaq exchange under the ticker of ‘ARVL’ on Thursday, March 25.
©Kalkine Group 2020
CIIG Stock Performance
On the back of the latest announcement, CIIG stocks surged by over five per cent on Monday. In the last one year, the SPAC scrips have shot up by nearly 155 per cent.
The stock, however, sank by about seven per cent on Tuesday.
Arrival-CIIG Merger Deal – Key Insights
The transaction between Arrival and CIIG will bring the combined company’s pro forma enterprise value to US$ 5.4 billion, said the official statement. The deal is also expected to reel in gross proceeds of US$ 660 million for the EV maker.
©Kalkine Group 2020
According to the agreement, existing shareholders of Arrival will hold about 88 per cent of the merged entity,
For the purpose of the transaction, CIIG is said to have raised about US$ 400 million in a private investment in public equity (PIPE) financing.
The SPAC reportedly held the EV manufacturer’s pro forma implied equity value at US$ 6.06 billion.
A manufacturer of electricity-powered trucks and buses, Arrival has big names like BlackRock on its investors’ list. It announced earlier in March that its electric vans are expected to go into full production by the third quarter of next year. While its vans begin trial runs on public roads this summer, the company’s electric buses will start a trial run with one of the United Kingdom’s biggest transport operators this autumn.
