The autocompany officially concluded a deal with a specialized company Churchill Capital IV (CCIV) as part of a transaction worth about $ 24 billion.
The transaction between LUCID and CCIV will bring the manufacturer of electric cars about $ 4.4 billion in cash, which will help him withdraw cars to the market, as well as expand their factory in Arizona. The agreement between the parties also includes a private share in public share capital (PIPE) by 2.5 billion dollars led by such investors, like Blackrock, Fidelity Management, Franklin Templton, Neumber Berman, Wellington Management and Winslow Capital. The transaction also includes a cash fee from CCIV of about 2.1 billion dollars.
"CCIV believes that the superb and proven LUCID technology, supported by explicit demand for stable electric vehicles, makes a very attractive investment for Sharchill Capital Corp IV shareholders, many of whom pays increased sustainability attention," said the Chairman and Executive Director of CCIV Michael Klein. in a statement. "We are pleased to cooperate with Peter and the rest of the Lucid leadership, as it supplies the long-awaited Lucid Air to the market at the end of this year, promising a significant breakthrough in the electric vehicle market and creating thousands of jobs in the US."
Lucid Motors received more than 1 billion dollars of investment from the State Investment Fund of Saudi Arabia (PIF) in 2018, and Klein performed as a key PIF adviser, which inevitably helped the opposite merger to become a reality. After the announcement of the transaction, the share of shares CCIV fell by 26% after the trading is closed.
"Lucid is proud to lead a new era of high-tech and highly efficient vehicles with zero emissions of harmful substances," added executive director and chief operating officer Lucid Peter Roblinson. "Thanks to the basic rethinking of how EVS is designed, our own technology-tested technology and careful design allowed us to provide advanced transmission efficiency in the industry and new performance levels. Lucid intends to speed up the transition to the next phase of our height, since we are working on the launch in 2021 of our new fully electric luxury sedan Lucid Air, and in 2023 - a luxurious GRAVITY PERFORMANCE SUV.