![]() ![]() However, Lucid did not enter into any definitive agreement with respect to any such private placement. In November and December 2020, with the assistance of Citi, Lucid met with more than a dozen potential investors in connection with a proposed private placement of Lucid’s equity securities. In September 2020, Lucid engaged Citi as a financial advisor to assist Lucid in evaluating various alternatives with respect to financing Lucid’s operations, including a private placement of equity securities, an initial public offering, and a business combination with a special purpose acquisition company (a “SPAC”). 130 of the proxy I've quoted it below ( emphasis is mine) Then, when the stock crashed on the deal announcement, I wondered if that would mark the turning point to pop the SPAC bubble.īut I wanted to do one more follow up, because their prelim deal proxy ( released yesterday) included an absolutely wild tidbit: this deal came together purely because the press speculated it was happening. I'm a great believer that the first product defines the brand in way Tesla model S defined Tesla as a brand,” Rawlinson told Yahoo Finance in October of last year.I've discussed CCIV a few times: in the lead up to their deal announcement, I discussed how crazy the stock price / action around the stock was. “I think it's really important that we start at a high-end position as a true luxury brand. The company aims to meet production goals for of its most expensive vehicle, the Air Dream Edition this year. Lucid Motors placed its first US production factory in Casa Grande, Arizona. The company's CEO and CTO Peter Rawlinson was the chief engineer at Tesla ( TSLA) for the model S prior to joining Lucid Motors in 2013. Lucid Motors has been closely watched since it is competing in the electric luxury sedan space. A deal with Churchill Capital IV is one of highest profile EV SPAC agreements since Nikola ( NKLA) and Fisker ( FSR) debuted publicly last year. The electric vehicle maker is backed by Saudi Arabia’s sovereign wealth fund. On Monday the stock had gained double digit percentages after a Bloomberg report said an agreement announcement could come by Tuesday. In mid-February shares of Churchill Capital IV, led by investment banker Michael Klein, surged 30% following a report of a nearing agreement. Speculation over an agreement had been circulating for more than a month prompting previous spikes in CCIV stock. The deal has a transaction equity value of $11.75 billion which includes a cash contribution from CCIV of $2.1 billion, and a PIPE investment of $2.5 billion with a lock-up provision that “binds holders well beyond closing.” It will provide the electric vehicle company with approximately $4.4 billion in cash. The transaction, announced on Monday evening, values Lucid at an initial pro-forma equity value of approximately $24 billion at the PIPE (private investment in public equity) offer price of $15.00 per share. ET, though coming off their session lows. Shares of Churchill Capital were down around 25% at 10:45 a.m. ![]() Lucid Motors and blank check company Churchill Capital IV ( CCIV) confirmed a merger deal to take the California-based EV company public. ![]()
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