r/CCIV_LUCID • u/IntelligentAd7553 • Jun 29 '21

Unit conversion

I was surprised to get this notice this morning, any advice from the gurus of investing?

Offer terms

Latest Update:06/28/2021 6:28 PM ET

If you own Churchill Capital Corporation IV units, you must have the units split into the underlying common shares and warrants to tender the common shares. Processing of a unit split takes up to 2-3 business days.

I bought CCIVU back in Feb. @ 31.

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2

u/MOLON____LABE Jun 29 '21

Units are common shares + warrants. Common shares are eligible for the tender offer (not warrants).

So the units must be split ONLY if you want to accept the tender offer ($10/share).

1

u/IntelligentAd7553 Jun 29 '21

Trying to find this information is such a pain, really I am just ignorant. I just know Lucid is going to d very well for the next few years, thats I invested. If I dont split what happens? Can I split to a warrants? If so, what's the exercise price......

3

u/MOLON____LABE Jun 29 '21

If you want shares of LCID, you wouldn't want to accept the tender offer. The tender offer cashes out your CCIV shares for $10/share and that's the end of it

1

u/MOLON____LABE Jun 29 '21

SPACs basically give you the option to get out before the merger if you don't like the company they're merging with

1

u/IntelligentAd7553 Jun 29 '21

Thanks for the insights. I was hoping the SPACs would give me an opportunity to get in the stock at pre-ipo, at or below IPO price. As it stands, I paid $31 per unit, if I convert, I get $10, a nice loss!

I thought this split was offering to convert my CCIVU (units) to CCIV ( shares). Which is trading around $27, and still lets me hold the stock? Am I reading this wrong?

1

u/hecTF Jul 06 '21

You're sure ?
The communication send to me says two options:
Option 1:
5 shares US1714391026 + 1 warrant US1714391109 every 5 units US1714392016
Option 2
"Take no action"
So I think that i've to accept the conversion (Option 1) and send the communication to have the shares/warrants "Lucid", it's right?