California-based EV company Lucid Motors and blank check company Churchill Capital IV (CCIV) completed a merger deal on Monday night. With the deal under wraps, the EV company is one step closer to realizing its goal of going public. Churchill Capital IV shares declined by 30% following the announcement.
As per the details of the agreement, Lucid Motors has been valued at an initial pro-forma equity value of approximately $24 billion. Their initial public offering is expected to be $15.00 per share.
The deal consisted of a transaction equity value of $11.75 billion, $2.1 billion of which is a cash contribution from CCIV. A further $2.5 billion was provided by way of a PIPE (private investment in public equity) investment.
The deal was finally secured after a month of speculation which led to several stock spikes for Churchill Capital. In mid-February, shares managed to climb by 30% as a result of the optimistic speculation.
CEO and CTO Peter Rawlinson made the following statement with regards to Lucid Motors’ brand: “I think it’s really important that we start at a high-end position as a true luxury brand. I’m a great believer that the first product defines the brand in the way Tesla model S defined Tesla as a brand.”
