British EV startup Arrival announces reverse stock split

(Reuters) - British EV startup Arrival SA said on Tuesday its shareholders, on April 6, approved a reverse stock split at a ratio of one-for-fifty to gain compliance with Nasdaq's listing regulations.

Arrival's stock fell about 8% to $0.13 in trading before the bell. The reverse stock split will be effective on April 14.

Last week Arrival said it would merge with blank-check firm Kensington Capital Acquisition Corp V.

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

The special purpose acquisition company had about $283 million in cash held in trust, that will contribute to the business, Arrival had said.

(Reporting by Akash Sriram in Bengaluru; Editing by Nivedita Bhattacharjee)