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Joining the bandwagon of electric vehicle makers that are going public is California-based Lucid Motors Inc, which is reportedly in talks for a merger with blank check company Churchill Capital Corp IV (NYSE: CCIV.U, CCIV.U:US).
The special purpose acquisition company (SPAC), said to be led by Wall Street veteran Michael Klein, saw its stocks soar by almost 34 per cent on Monday, January 11, to US$ 13.7. Since debuting on the stock markets in July last year, Churchill Capital stocks climbed by nearly 37 per cent in the last roughly six months.
Let’s take a closer look at the SPAC merger that Lucid Motors Inc is looking at.
©Kalkine Group 2021
Lucid Motors Inc & Churchill Capital Corp Merger
The merger between Lucid Motors Inc and Churchill Capital Corp is said to be valued at about US$ 15 billion, although the deals are yet to be finalized, as per media reports. The companies are yet to come out with any official confirmation regarding the matter.
Churchill Capital Corp IV reported in its latest SEC filing that it has raised more than US$ 2 billion last year.
In the six months ending 30 September 2020, Churchill Capital Corp saw a net cash of US$ 1.3 million used in operating activities.
The SPAC came to being in April 2020, in Delaware.
Micheal Klein's other SPAC, Churchill Capital III, closed a merger deal with health care company MultiPlan Corporation (NYSE: MPLN, MPLN:US) in October last year. The SPAC raised reportedly raised over US$ 3 billion for the company.
Lucid Motors Inc is reputed as one of the top EV producers in the market. It is currently led by Tesla Inc’s chief engineer on its Model S sedan, Peter Rawlinson.
The American car manufacturer is said to be backed by Saudi Arabia’s sovereign wealth trust, the Public Investment Fund.
Lucid Motors is yet another EV maker to get in line for a public listing recently. Startup Faraday & Future Inc announced its plans to go public via a merger with SPAC Property Solutions Acquisition Corp earlier this week. Nikola Corp and Fisker Inc also got publicly listed on stock markets through SPAC mergers last year.
