British electric vehicle (EV) maker Arrival has secured up to $50 million of new equity capital.

The company said the move will significantly reduce the company’s debt and improve its liquidity position.

Arrival said the additional $50 million of capital would also help support the ongoing development of its products.

The funds were secured by the company’s sale of new common stock to Antera Capital Master Fund and will exchange around $121 million in 3.5 per cent convertible notes held by Antara for additional equity, it said.

John Wozniak, chief financial officer at Arrival, commented: “Today’s agreements are an important step in the fund-raising process to support Arrival’s business plan and are in the best interests of all of our stakeholders.”

He added: “We are delighted by the confidence that Antara has demonstrated in the exciting technologies we have developed to unlock the significant potential in the EV market.”

Arrival recently shared a prototype of a dedicated electric ride-hailing vehicle in collaboration with Uber.

The company has also previously shared a prototype for an electric bus.

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