Arrival to scrap plan to merge with SPAC

(Reuters) -British electric vehicle startup Arrival SA said on Monday it would terminate plans to merge with special purpose acquisition company (SPAC) Kensington Capital Acquisition Corp V.

Arrival, whose shares fell more than 2% in extended trading, had said in April it would merge with blank-check firm Kensington Capital Acquisition Corp V to raise cash.

EV firms have been experiencing a cash problem over the past few months, as high costs related to production ramp-ups and soaring inflation eat into their reserves.

Arrival said in May that it expects to report one or more material weakness in internal control over financial reporting.