The PIPE is priced at $15.00 per share (a 50% premium to CCIV's net asset value) with an implied pro forma equity value of $24 billion The transaction includes an approximately $2.1 billion cash contribution by CCIV and a $2.5 billion, fully committed PIPE with an investor lock-up provision that binds holders well beyond closing. ![]() CCIV and Lucid are combining at a transaction equity value of $11.75 billion Transaction provides additional growth capital as Lucid brings the over 500-mile range Lucid Air luxury electric sedan to market and expands rapidly to offer a broad range of electric vehicle products powered by Lucid's proprietary electric powertrain technology Lucid's mission is to inspire the adoption of sustainable transportation by creating the most captivating luxury electric vehicles centered around the human experience "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.Lucid Motors to Go Public in Merger with Churchill Capital Corp IV, Bolstering Lucid's Vision to Redefine Luxury, Performance and Efficiency in the Sustainable Electric Vehicle Market "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. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |