Company: ARAI
Filing Date: 2025-03-24
Form Type: S-1/A
Source: 0001641172-25-000350
Chunk: 57

Company: Arrive AI Inc.
Filing Date: 2025-03-24
Form: S-1/A
Chunk 57
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 holders of preferred stock could adversely affect the market price for our common stock by making an investment in the common stock less attractive. For example, investors in the common stock may not wish to purchase common stock at a price above the conversion price of a series of convertible preferred stock because the holders of the preferred stock would effectively be entitled to purchase common stock at the lower conversion price, causing economic dilution to the holders of common stock.

Risks Related to this Direct Listing and Ownership of Our Common Stock

Our listing differs significantly from an initial public offering conducted on a firm-commitment basis.

This is not an initial public offering of common stock conducted on a firm-commitment underwritten basis. There have been few companies that have undertaken a direct listing to date and there are many uncertainties associated with such type of listing. This listing of our common stock on Nasdaq differs from a firm-commitment underwritten initial public offering in several significant ways, which include, but are not limited to, the following:

| ● | There                                                                                                                                    
 are no underwriters engaged on a firm-commitment basis. Consequently, prior to the opening of trading on Nasdaq, there will be no        
 traditional book building process and no price at which underwriters initially sold shares to the public to help inform efficient        
 and sufficient price discovery with respect to the opening trades on Nasdaq. Therefore, buy and sell orders submitted prior to and       
 at the opening of trading of our common stock on Nasdaq will not have the benefit of being informed by a published price range or        
 a price at which the underwriters initially sold shares to the public, as would be the case in an initial public offering underwritten   
 on a firm-commitment basis. Moreover, there will be no underwriters engaged on a firm-commitment underwritten basis assuming risk        
 in connection with the initial resale of shares of our common stock. In an initial public offering underwritten on a firm-commitment     
 basis, the underwriters may engage in “covered” short sales in an amount of shares representing the underwriters’                        
 option to purchase additional shares. To close a covered short position, the underwriters purchase shares in the open market or exercise 
 the underwriters’ option to purchase additional shares. In determining the source of shares to close the covered short position,         
 the underwriters typically consider, among other things, the price of shares available for purchase in the open market as compared       
 to the price at which they may purchase shares through the underwriters’ option to purchase additional shares. Purchases in              
 the open market