Business & Investment

Lucid Motors finally confirms SPAC deal, stock price plummets

The parties officially announced a deal on Monday afternoon after the stock price of a blank check company, which is rumored to be aiming to acquire the electric car company Lucid Motors, soared for several weeks, and the stock price plummeted. ..

Lucid, potentially lively Tesla Inc.

Rivals agree to integrate with Churchill Capital Corporation IV
+ 8.37%
A special purpose acquisition company, also known as a blank check company, or SPAC. SPACs have been very popular during the COVID-19 pandemic and have been used repeatedly in electric vehicles and related sectors amid a tremendous rise in Tesla’s reputation.

Lucid and Churchill announced on Monday afternoon that they combined at a trading stock value of $ 11.75 billion and attracted private investment in trading at $ 15 per share, which means a valuation of $ 24 billion. Private investment in public equity trading, known as PIPE, and cash from Churchill will provide Lucid with a total of approximately $ 4.4 billion, the parties reported.

However, rumors that the deal would take place sent Churchill shares well above the levels detailed in the announcement on Monday, but overtime trading saw the shares soar by more than 25%. The closing price on Monday was $ 57.37. Like all SPACs, Churchill was published at a price of $ 10 per share, and most of the profits came after the report of the debate between lucid dreaming and Churchill.

Lucid is based in Newark, California. This is a city in the San Francisco Bay Area next to Tesla’s original factory in Fremont. CEO Peter Rawlinson, who will continue to lead the company after the deal closes, is Tesla’s Model S chief engineer and set out for lucid dreaming.

In a statement, Rawlinson said, “Lucido is the next step in growth as it works towards the launch of the new purely electric luxury sedan Lucido Air in 2021 followed by the Gravity Performance Luxury SUV in 2023. We plan to accelerate towards. ” .. “The funds from this transaction will also be used to support the expansion of Arizona’s manufacturing facility, which is North America’s first dedicated Greenfield EV manufacturing facility and is already in operation with a prototype build of Lucid Air.”

Lucid expects the post-investment US workforce to double from its current 2,000 to about 5,000 by the end of 2022.

Lucid is backed by a large number of heavy hitters, beyond the already significant investment from Saudi Arabia’s Public Investment Fund, which also invests in PIPE. Other companies involved in the investment, announced Monday, include funds managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital Management LLC. And account “includes. Related common stock PIPE.

PIPE investors have agreed not to sell their shares until September 1st or until the shares are registered, whichever is later. Existing investors face a six-month stock lockup. Churchill’s sponsor has agreed not to sell its shares for 18 months after the transaction closes.

Lucid Motors finally confirms SPAC deal, stock price plummets Lucid Motors finally confirms SPAC deal, stock price plummets

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