IV (CCIV), a special acquisition company (SPAC). Yesterday, Lucid Motors finally announced its official reverse merger with Churchill Capital Corp. If it wanted, the carmaker could push for better terms - such as a smaller stake for Klein’s SPAC - or walk away and do a regular IPO at a much higher valuation. Merging with a SPAC gives the founders price certainty - they get to negotiate the deal value directly with the acquirer - but they still run the risk of underestimating demand for their shares. And what of Michael Klein and Churchill? Shares in Multiplan Corp., another Klein transaction, have fallen 25% below the $10 price at which his Churchill Capital Corp III first sold shares. public reportedly could be announced as early as Tuesday. After weeks of speculation, a deal to take Newark-based Lucid Motors Inc. The sovereign wealth find injected more than $1 billion into the carmaker in 2018, and it owns an 85% stake.
So far Lucid has received a modest 7,500 reservations for its first model, an attractive and technologically advanced luxury sedan called the Lucid … Lucid has an experienced team of executives but for now it’s operating in a small and increasingly competitive niche - luxury electric sedans. On January 11, Bloomberg broke the news about CCIV and Lucid Motors being in talks. This may pay off in the long term, as it has for Tesla, but Lucid’s near-term projected cash flows look like this: Right now its finances aren’t in tip-top condition. This is essentially what’s happened to Churchill Capital Corp IV, the largest of Michael Klein’s seven special purpose acquisition companies. When it comes to the CCIV-Lucid merger, it wasn't the usual Stocktwits, Reddit, or Twitter discussions. 1, Shares in Michael Klein's SPAC have surged on hopes it will merge with Lucid. And yet, the luxury electric-car start-up still delivered a few surprises when the $11.75 billion transaction was announced on Monday. Shareholder democracy, eh? But the thing that stood out in Lucid’s financial disclosures was the level of projected cash burn: It expects to consume almost $10 billion of cash in four years. It is also worth mentioning that Lucid has strong … Lucid’s biggest shareholder is Saudi Arabia’s Public Investment Fund, and Klein is one of the kingdom’s most trusted financial advisers, having helped steer the listing of Aramco. Shares in Churchill Capital II, which is merging with digital-learning company Skillsoft Ltd., are trading close to $10, a level that might cause some of that SPAC’s investors to redeem their holdings for cash rather than fund the proposed transaction. But Lucid and Churchill haven’t confirmed any of that yet, so investors bidding up the SPAC’s shares are taking a punt. The … Bloomberg reported at the beginning of January that the special purpose acquisition company was in talks to bring Lucid Motors public. CEO Alan Mulally), and a third to Klein’s firm M. If Churchill follows the typical SPAC approach, it would split those returns three ways: a third to its financial partners, a third to members of Churchill’s brain trust (people like former Apple design boss Jony Ive and former Ford Motor Co. Still, it’s an astonishing jump in value. Klein will use Churchill Capital Corp IV (CCIV), his largest SPAC that has raised more than $2 billion, for the transaction, the people said. Report of Lucid Merger With CCIV Lucid was founded in 2007 as Atieva by former Tesla TSLA +0.4% executive Bernard Tse and entrepreneur Sam Weng. Churchill Capital IV raised a bit more than $2 billion in an initial public offering last summer by selling shares for $10 a piece, the standard price for most blank-check companies. CCIV's stock price has risen rapidly since the Bloomberg report on 1/11/21 of CCIV being in talks to merge with Lucid Motors. Citi Is Still Mad About That $500 Million, The Tech Stocks Rebound Is a Dinosaur Brain Event, Texas Is the Future - If Only It Doesn't Become California. It also plans to offer energy storage equipment. Have a confidential tip for our reporters? There are signs that a deal is near, with Reuters reporting that Lucid will be valued at about $12 billion and that Churchill has begun talks with investors about a concurrent capital-raising transaction, known as a PIPE. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences. After some digging, I discovered a strong connection between Ed Ludlow and Lucid. Rival EV maker Rivian is to look for an IPO later this year with a potential $50 billion valuation according to Bloomberg.