Arrival SA (NASDAQ:ARVL) shares soared after it struck a business combination agreement with Kensington Capital Acquisition Corp, a special purpose acquisition company.
Arrival is developing an innovative Class 4 extra-large van that the company believes offers a high-quality user experience and lower cost of ownership for commercial operators. Arrival’s purpose-built XL Van targets the underserved last-mile delivery market in the US.
Most importantly, Kensington has $283 million of cash held in trust, pre-redemptions to contribute to the combined business.
Arrival SA shares popped nearly 30% to $0.16 on the tech-dominated Nasdaq in morning trade.
Arrival uses proprietary hardware components, robotics technologies, and sustainable composite materials to efficiently produce vehicles that will be customized for the cities and regions that they serve.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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