Lucid Motors has recently announced an intent of the company to alter merge with a blank-check dedicated company Churchill Capital IV Corp in an agreement to trade and operate publicly.
Formerly known as Atieva, Lucid Motors Inc is a famous auto firm specifically dedicated in producing electric cars. As per recent reports, the American company aims to increases the assumption for electric cars across the globe. Therefore the idea of going public sets Lucid on the right path. The company is sponsored by a Saudi Arabia’s sovereign fund who per reports purchased about 67% slide in the electric car producer as Lucid by end of 2018 made 1.3billion dollars.
The deal between the electric car maker and the blank-check firm becomes the biggest so far involving an electric car firm and a blank-check company. Lucid Motors and Churchill Capitals deal track behind other smaller SPAC with electric car producers merger this year such as the Fisker and Lordstown Motors, and EV infrastructure company EVgo and ChargePoint.
Lucid Motors and Churchill Capital merger with the biggest share going to Saudi Arabia’s sovereign fund has its private investment in the agreement priced at $15 per share bringing the expected pro-forma equity value at $24 billion. The deal will also have a trade equity value of about $11.75 billion.
Though Lucid was much projected in this deal to go public, the blank- check, special purpose acquisition company, Churchill Capital Corp IV seem to be the prime benefactor of the agreement. Churchill Capital has seen major growth with the company’s stock since the news was initially reported last month.
According to data from the company, shares of the investment banker Michael Klein company has seen a price surge more than 19% since the merger with Lucid motors was reported. The blank-check firm has also seen a sharp rapid growth of its stock to about 425% as news of the deal between the SPAC and Lucid Motors spread abroad.
Many experts define SPAC deals as fast capital however most of them believe it does not contain much money to get an in-house car production. Nevertheless, Lucid has other projects that sets the company to new heights. The company in December last year finished the construction of its first factory that by the company’s prospects may be able to produce more than 400,000 cars yearly. The factory which is located at Casa Grande, Arizona will begin production this year. From reports, Lucid Motors is also making a manufacturing facility close to the Red Sea city of Jeddah.
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Experienced Writer with a demonstrated history of working in the financial services and the technology industry.