EV maker Arrival’s shares slump on Nasdaq delisting notice

(Reuters) – Arrival said it received a delisting and stock trading suspension notice from the Nasdaq, sending the British electric-vehicle company’s shares down about 15% on Monday.

Trading in Arrival’s stock will be suspended from Jan. 30, as per the letter.

The company, like other EV startups, has battled higher interest rates and production costs over the past year, as well as dwindling cash reserves due to a funding squeeze.

Arrival was reportedly in talks with accounting firm EY about acting as an administrator if the company could not secure funds, Sky News reported on earlier this month.

Many EV firms, including Lordstown Motors, Proterra and Sweden’s Volta Trucks, have gone bankrupt as a tough economy weighs on demand and hinders access to capital.

Arrival previously received a notice of delisting from Nasdaq for not complying with listing rules due to a delay in filing its interim financial statements and failure to hold an annual shareholder meeting.

Reporting by Zaheer Kachwala in Bengaluru; Editing by Sriraj Kalluvila