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Summary
- Churchill Capital Corp IV (NYSE: CCIV, CCIV:US) saw its stocks gallop by nearly 32 per cent on Tuesday, February 16.
- The most recent jump in its stock price came as a fresh report claimed that Churchill has taken its talks for the merger further.
- If the merger deal between Lucid Motors and Churchill Capital turns out to a reality, it would be the “biggest” SPAC-EV maker merger of all, the report noted.
Churchill Capital Corp IV (NYSE: CCIV, CCIV:US), a blank check company owned by veteran financier Michael Klein, saw its stocks gallop by nearly 32 per cent on Tuesday, February 16. With the latest surge, the special purpose acquisition company (SPAC) managed to record a fresh 52-week high of US$ 55, while closing for the day at a price of US$ 52.7.
The SPAC’s rumored merger with high-end electric vehicle (EV) maker Lucid Motors Inc has been repeatedly boosting its stocks since the first reports cropped up around January 2021. It currently records a stock price growth of over 426 per cent year-to-date. The most recent jump in its stock price came as a fresh report claimed that Churchill has taken its talks for the merger further.
Let’s dive in to know more about this potential deal.
What We Know From Churchill Capital IV & Lucid Motors Merger Reports?
Reuters reported on Tuesday, quoting sources “familiar with the matter", that Churchill Capital IV has already began discussions with investors regarding raising proceeds for its potential merger with Lucid Motors. The SPAC reportedly intends to generate at least US$ 1 billion via a ‘private investment in public equity’ (PIPE) transaction, but could breach the US$ 1.5 billion-mark based on investor demand.
The report added that Lucid Motors Inc is inching closer to a merger deal with Churchill Capital IV at a valuation of about US$ 12 billion.
©Kalkine Group 2021
Combining with a blank check company is a way for privately owned enterprises to go public, a process often referred to as reverse-merger. In the last one year or so, a number of EV producers have merged with SPACs to get publicly listed, such as Nikola Corp, Canoo Ltd, Fisker Inc, etc. If the merger deal between Lucid Motors and Churchill Capital turns out to a reality, it would be the “biggest” SPAC-EV maker merger of all, the report noted.
Lucid Motors and Churchill owners are said to have agreed on the crucial terms of the agreement, as per the sources. The report added that based on the successful completion of the PIPE financing, a merger deal between the two could be expected before the end of February.
However, both Churchill and Lucid Motors are yet to make a statement about the merger speculation.
