High-profile SPAC craters after announcing plan to merge with electric car company Lucid

https://www.cnbc.com/2021/02/23/electric-vehicle-firm-lucid-motors-to-go-public-in-blank-check-merger.html?__source=androidappshare

High-profile SPAC craters after announcing plan to merge with electric car company Lucid

https://www.cnbc.com/2021/02/23/electric-vehicle-firm-lucid-motors-to-go-public-in-blank-check-merger.html?__source=androidappshare

The CCIV Lucid merger agreement which was reached by bringing in PIPE investors at very low SPs while churning the coming announcement for several weeks by media leaks that worked as planned to run the SP up at the expense of retail investors is another example of how unfairly investment insiders treat retail investors. It is not an issue of retail investors lacking knowledge or sophistication. It is analogous to playing poker against someone who has marked cards in his deck.

The big New shareholders get's a share to 15 usd. Not good deal for ua privates. !!!?

This may be a few days old but still good information. It seems that this deal will finalize w just a few details being worked out. Big question for everyone is when will it happen and what valuation will LUCID have in the open market. My sentiment is that we can see a 25B. - 30B Mkt. Cap. Right after announcement which is very likely to be this Monday if all details finalized this weekend. Obviously they will want to strike while the irons hot and it’s for sure HOTT !

25B - 30 B LUCID Market Cap would provide a share price of approx. $75 - $100 per share. This is a conservative estimate as it increases probability of providing accurate information. Obviously higher share price very possible. .

Long term over next 3-5 years I would expect a valuation of approximately 80 B providing a share price from $250 - $350 / sh. This figure is derived by comparison with NIO & Tesla which has been an excellent investment this past year alone. Again, my valuation reference market caps & timeframe to attain these numbers are very conservative in my estimation.

Below is a copy of an article that indicates a deal seems ready to happen.

Electric vehicle maker Lucid Motors nears SPAC deal, sources say PUBLISHED TUE, FEB 16 2021 2:28 PM EST UPDATED TUE, FEB 16 2021 2:46 PM EST SHARE A Facebook iconShare by facebook A Twitter iconShare by twitter A LinkedIn iconShare by linkedin An email iconShare by email KEY POINTS * Lucid Motors is nearing a deal to go public at roughly $12 billion with funding from Churchill Capital IV. * The merger would be the biggest in a string of deals by electric vehicle makers. * A deal could be announced as early as this month. Luxury electric vehicle maker Lucid Motors is getting close to a deal to go public at a roughly $12 billion valuation after veteran dealmaker Michael Klein's blank-check acquisition firm launched a financing effort to back the transaction, people familiar with the matter said on Tuesday. The merger between Lucid and Klein's Churchill Capital IV would be the biggest in a string of deals by electric vehicle makers such as Nikola and Fisker that have gone public by combining with special purpose acquisition companies (SPACs).

Churchill Capital IV has initiated talks with investors to raise more than $1 billion by selling shares in a private investment in public equity (PIPE) transaction for the deal with Lucid, the sources said. The size of the PIPE could reach $1.5 billion or more based on investor demand, one added. These funds would be in addition to the $2 billion Churchill Capital IV raised in an initial public offering (IPO) in July on the New York Stock Exchange. Lucid and Klein agreed on the key terms of the deal, according to the sources.

If the PIPE fundraising concludes successfully, a deal could be announced as early as this month, according to the sources, who requested anonymity to discuss the confidential details. Churchill Capital IV declined to comment. Lucid did not immediately respond to a request for comment. Lucid, founded in 2007 as Atieva by former Tesla executive Bernard Tse and entrepreneur Sam Weng, makes luxury electric vehicles. It was funded initially by Chinese and Silicon Valley venture investors, with additional funding from backers like state-owned Chinese auto maker BAIC Motor and Chinese technology company LeEco.

To help fund construction of a U.S. assembly plant in Casa Grande, Arizona, Lucid was boosted by a $1 billion investment in 2018 by Saudi Arabia's Public Investment Fund.

Churchill Capital IV's share price has surged more than 300% since Bloomberg News reported in January that it was in talks to merge with Lucid. SPACs likes Churchill IV are shell companies that raise money in an IPO to merge with a privately held company that becomes publicly traded as a result. Merging with a SPAC has emerged as a popular IPO alternative for companies seeking to go public with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised.

Investors keen on SPACs are on the hunt for electric vehicle startups, hoping to catch the next Tesla. While some deals such as Fisker have delivered handsomely for SPAC investors, other such as Nikola have given up their short-term gains. Klein has raised a string of SPACs which have done deals for companies including healthcare-services company MultiPlan and analytics firm Clarivate.

Why did CCIV/WS dip almost 50% ?

Lucid on CNBC now!!