Fishers-based smart-mailbox company Arrive AI set to go public this week

Fishers-based smart-mailbox company Arrive AI Inc. has received approval to list its shares on the Nasdaq market, and the company expects trading to begin Thursday under the ticker symbol ARAI.

Arrive, which filed its first patent in 2014, has developed a smart mailbox—a climate-controlled, secure receptacle—for human or drone-based mail pickup and delivery. Arrive’s platform also provides tracking data, smart logistics controls and other information for shippers, delivery services and autonomous delivery networks.

The company plans to first target customers in the medical industry, including hospitals, labs, clinics, doctors, pharmacies and large assisted-living operators, before later expanding to other markets.

Company founder and CEO Dan O’Toole said he expects the first ARAI trade to happen within hours after the Nasdaq opens for trading on Thursday.

The company is going public via a direct listing on the Nasdaq Global Market, which is an alternative to an initial public offering. Arrive first announced its plans in December.

Unlike an initial public offering, companies that go public via direct listing do not sell additional shares to the public, meaning that they do not raise additional capital via such a transaction. Instead, the direct listing gives existing shareholders a chance to sell their shares on the public market. Going public via a direct listing also gives a company the ability to raise future capital via additional stock sales.

Launched in 2019, Arrive has raised $12 million to date, mostly from crowdfunding campaigns, and has about 5,000 current shareholders. The current value of those shares is between $11.20 and $13 per share, depending on how long the shareholder has been invested in the company, O’Toole said.

O’Toole said going public marks a significant and emotional milestone for the company, which has yet to earn revenue and had tried to go public on two previous occasions.

“For a company to be pre-revenue for 11 years, have 5,000 investors and go through all these different contingencies that we’ve had to go through and survive to get to the other side—to do what we’re doing is really unheard of,” O’Toole said.

According to a public filing with the U.S. Securities and Exchange Commission, an institutional investor has agreed to purchase up to $40 million worth of Arrive’s stock. This agreement means that there will be a market for Arrive shareholders who decide to sell their shares.

O’Toole will remain the company’s majority shareholder once the company goes public, holding 78% of its shares.

New York City-based investment bank Maxim Group LLC was Arrive’s exclusive financial adviser in connection with the direct listing.

Arrive operates out of the Launch Fishers co-working facility. As of Dec. 31, Arrive had seven full-time employees and another 15 part-time employees who worked for the company on a contract basis.

In 2024, an SEC filing shows Arrive had a net loss of $4.5 million. In 2023 and 2022, the company posted net losses of $7.3 million and $2.4 million, respectively.

Arrive had tried to go public on two previous occasions in recent years.

In December 2023, Arrive announced its plans to go public via a merger with Vancouver, British Columbia-based Brüush, a publicly traded e-commerce company that sells electric toothbrushes. Arrive pulled the plug on the merger in June after Brüush was suspended from the Nasdaq Stock Market for failure to comply with Nasdaq’s qualifications for listing.

Prior to that, Arrive had planned to go public via an acquisition by a special purpose acquisition company, or SPAC. Arrive signed a letter of intent with that SPAC, San Francisco-based Pepperlime Health Acquisition Corp., in April 2023 but the deal fell apart later that year. Pepperlime ceased operations in March of this year.