1/6/2024 0 Comments Lucid ccivThe price of Churchill Capital IV is up 300% since January 11th 2021 (Source: TradingView)Ĭhurchill Capital IV would raise an additional amount of $1-1.5 billion for the transaction by selling shares in a PIPE, adding to the $2 billion they already raised from its IPO in July. The stock price of Churchill Capital IV was up 300% since the announcement in the Bloomberg report, and with a 33% surge on Tuesday, following a Reuters report suggesting that the two entities agreed on the key terms of the deal, with a public valuation of $12 billion. Venrock Associates is a venture capital firm that has been invested in Lucid Motors since 2009, back when the company was still called Atieva.īoth companies declined to comment on the news.Ī 300% surge in the stock price following Reuters report Financial terms of the transaction are unknown.” “A consortium led by Venrock Associates proposed to sell Lucid Motors Inc to Churchill Capital Corp IV. Shares of Churchill Capital IV have been steadily rising over the past month, since Bloomberg published a report stating that the special purpose acquisition company (SPAC) was planning a merger with the luxury electric vehicle manufacturer Lucid Motors. The Lucid Air, an all-electric luxury Sedan (Source: Electrek) Talks between the SPAC and the EV manufacturer If the deal does happen, Lucid Motors will join the over-130 list of companies that are going public via SPAC in 2021.The news was once again supported by a new Reuters report, suggesting that the deal might value the company at $12 billion and that there could be an official merger announcement as early as this month.The SPAC share price jumped 300% since the announcement of the deal by Bloomberg on January 11 th.Churchill Capital Corp IV is reportedly in talks with EV company Lucid Motors to take them public through a SPAC-merger deal."We are making significant investments in the long-term growth and innovation of our company, and we will continue to bring to bear world-class technology to positively impact mankind's transition to sustainable mobility.Could we soon see yet another EV company going public via a SPAC deal? According to Reuters, a new deal between Michael Klein-backed SPAC Churchill Capital IV and EV company Lucid Air could be announced before the end of the month. "Lucid has further increased its momentum as we gear up to make the first customer deliveries of our Lucid Air lineup of electric sedans later this year," Lucid CEO Peter Rawlinson said in a statement. Those efforts worked and the companies have sealed the deal. hquMJxjZFEĬhurchill Capital IV and Lucid extended the deadline for shareholders to vote, and executives pleaded with investors to vote in favor of all proposals in order to cross the finish line. We extend our sincere thanks to our customers, shareholders, fans, and employees for their continued support. We will begin trading on Monday under the ticker symbol $LCID. Lucid Motors and Churchill Capital IV close the business combination. Future capital raises will be dilutive, but the company will need that money to fund future growth. The higher share authorization was also necessary to accommodate the shares being sold to institutional investors participating in the PIPE (private investment in public equity), which is actually bringing more money ($2.5 billion) to the table than the SPAC itself ($2.1 billion).Īdditionally, Lucid will likely need to raise capital in a few years since entering the automotive industry is one of the most capital-intensive endeavors on the planet. In other words, the exchange ratio is not particularly relevant to the SPAC's public investors, who incorrectly feared that excessive dilution could adversely impact the value of the investment. But that only applies to the previous incarnation of Lucid and its investors, such as Saudi Arabia's Public Investment Fund and employees who received stock-based compensation. Some investors saw the move as highly dilutive based on misinterpretations of regulatory filings, which details a 2.61 exchange ratio of Churchill Capital IV shares to Lucid stock. This proposal was necessary in order to complete the transaction, but misinformation about it had been spreading on social media in recent months. There was some confusion among retail investors over one of the SPAC's proposals, which would amend the company's charter and authorize it to increase the total number of shares.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |