The transaction deal is expected to provide additional growth capital to the automaker as it is poised to introduce a new range of Lucid Air Luxury electric sedan to the global market
California-based EV company, Lucid Motors has reportedly announced entering a strategic merger agreement with Churchill Capital Corp IV, reaching an overall transaction valuation of USD 11.75 billion. As per credible reports, the transaction includes an approximate USD 2.1 billion cash input by the latter company and a USD 2.5 billion, PIPE with an investor lock-up provision.
Moreover, the PIPE is valued at USD 15 per share with an implied pro forma equity value of USD 24 billion.
Speculations have it that the agreement would offer additional growth capital to the EV firm as it looks forward to bringing in over 500-mile range Lucid Air Luxury electric sedans to the market worldwide. It also seeks to expand rapidly to provide an expansive range of electric vehicle products and services powered by Lucid’s patented electric powertrain technology.
Speaking on the recent move, CTO and CEO of Lucid Motors- Peter Rawlinson cited that the company is proud to be leading the new era of efficiency, high-technology zero-emission transportation. He added that Lucid is going public to escalate into the next phase of its growth as the team plans to work closely for the introduction of its new only-electric luxury sedan, Lucid Air, in 2021, and its Gravity performance luxury SUV in 2023.
He further added that financing from the transaction deal would potentially be used to support the expansion of Lucid’s production facility in Arizona and would enable the realization of its vision to provide its highly evolved EV technologies to various third parties like OEMs.
Meanwhile, Michael Klein, CEO and Chairman of CCIV, quoted that the firm believes that automaker’s robust and proven technology supported by clear demands for a sustainable EV, makes Lucid a highly attractive investment for the CCIV stakeholders, many of whom have an enhanced focus on sustainability.