ARVL - Why Arrival Stock Got Mashed on Monday
European electric vehicle (EV) start-up Arrival (NASDAQ: ARVL) was departing from plenty of investor portfolios on Monday. The company's share price fell by over 5%, on a generally good day for the stock market overall. News of a big share sale by a top investor in the company was the catalyst for the downward move.
Arrival, a relatively small player in the expanding EV market, disclosed on Monday that said investor is selling up to 250 million Arrival shares. The news comes several days after the EV maker divulged that it sold $25 million in newly issued stock to that investor, Antara Capital Master Fund, and held an option to sell up to $25 million more. It also exchanged nearly $122 million worth of convertible debt held by Antara into equity.
Antara is selling 125 million shares, its partner said. This essentially matches the initial stock position Arrival sold to the company. Antara could also opt to sell an additional 125 million, depending on whether (and to what degree) Arrival decides to exercise its option.
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Why Arrival Stock Got Mashed on Monday