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Summary
- Churchill Capital shares rose to their highest level ever at US$ 22.67 on Friday, January 22.
- The blank check company issued an official statement on January 19, saying that it will “not comment” on inquiries pertaining to any specific business opportunity it is seeking.
- Churchill Capital noted that as a SPAC, it is “always evaluating” a range of potential business mergers.
Stocks of blank check company Churchill Capital Corp IV (NYSE: CCIV.U, CCIV.U:US) have been on the rise since reports of its merger talks with California-based electric vehicle (EV) firm Lucid Motors Inc made headlines earlier in January. The special purpose acquisition company (SPAC) saw its stocks soar by over 123 per cent in 2021 so far, and by almost 126 per cent in the last six months.
Churchill Capital shares rose to their highest level ever at US$ 22.67 on Friday, January 22. The stock price slipped marginally intraday to close at US$ 22.35 on Friday.
Wall Street veteran Michael Klein, who owns Churchill Capital, is said to have been looking around for a business combination for his SPAC for a while now. Back in November, Churchill Capital Corp IV showed interest in acquiring a stake in telecom company AT&T Inc's DirecTV satellite-television business, the talks reportedly never went through.
So, are Lucid Motors and Churchill Capital merging? Looks like the bosses aren’t ready to talk about it yet.
©Kalkine Group 2020
‘We Will Not Comment,’ Says Churchill Capital Corp
The US-based shell company issued an official statement on Tuesday, January 19, saying that it will “not comment” on inquiries pertaining to any specific business opportunity it is seeking. The statement, it says, came in response to various inquiries from its shareholders and the New York Stock Exchange, possibly regarding the speculation about its merger with Lucid Motors.
Churchill Capital, however, noted that as a SPAC, it is “always evaluating” a range of potential business mergers.
A different shell company owned by Michael Klein, Churchill Capital III, closed a business combination deal with health care enterprise MultiPlan Corporation (NYSE: MPLN, MPLN:US) in October 2020.
Reports claims that a merger between Lucid Motors and Churchill Capital would be valued at about US$ 15 billion. The blank check company reported in its latest regulatory filing that it raised over US$ 2 billion in 2020.
Churchill Capital Corp also posted that its net cash used in operating activities stood at US$ 1.3 million in the six months ending 30 September 2020.
With a rising number of EV firms going public via the SPAC merger way, it will not be very unusual for Churchill Capital to finalize a business combination with Lucid Motors. However, neither of the companies have confirmed the reports yet.
