Lucid Motors merges with $CCIV through SPAC
Lucid Motors confirms the long-rumored merger with Churchill Capital Corp (NYSE: CCIV), with a mission to bring advanced luxury EVs to the market. The SPAC (Special Acquisition Purpose company) added $2.1 billion USD in cash on Lucid Motor’s balance sheet as well as an additional $2.5 billion USD PIPE (Private Investment in Public Equity) in an effort to begin deliveries of the new Lucid Air in late 2021, followed by an SUV in 2023. At the time of writing, shares of $CCIV trade at $40.00 USD aftermarket - down from $57.37 USD - in order to more closely reflect the deal’s $11.75 billion USD market cap.
#LucidMotors is on a mission to elevate the expectations for electric vehicles. Today, we’ve entered an agreement to merge with CCIV. Going public will accelerate our efforts to introduce the most advanced EV's in the world.
— Lucid Motors (@LucidMotors) February 22, 2021
Info: https://t.co/aRsl6DcbxV pic.twitter.com/2N3qXAGdCi
Source: twitter.com
Lucid’s mission is to inspire the adoption of sustainable transportation by creating the most captivating luxury electric vehicles centered around the human experience.
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.
CCIV and Lucid are combining at a transaction equity value of $11.75 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. 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.
PIPE investment anchored by the Public Investment Fund (PIF) as well as funds and accounts managed by BlackRock, Fidelity Management & Research LLC, Franklin Templeton, Neuberger Berman, Wellington Management and Winslow Capital Management, LLC.
This transaction includes the largest ever SPAC-related common stock PIPE.
Peter Rawlinson will continue to lead Lucid as CEO and CTO.
Lucid currently employs nearly 2,000 people, with 3,000 employees expected to be added in the U.S. domestically by the end of 2022.
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