Lucid Motors has signed a merger agreement with Shechel Capital Corp. AV (CCIV), a publicly listed Special Purpose Acquisition Company (SPAC).
According to Arabnet in a company statement, the merger between the two companies creates an entity worth $ 11.75 billion.
The deal includes about $ 2.1 billion for Lucid in cash, and about $ 2.5 billion in pledges by investors through the PIPE mechanism.
PIPE is the private equity investment mechanism, which is the purchase of shares in a listed company at a price lower than the current market price. This mechanism is followed by investment institutions, mutual funds, and high net worth investors to buy shares.
The share price was evaluated through the PIPE mechanism at $ 15 per share, (representing a premium of 50% of CCIV's net assets value), with an implicit value of $ 24 billion.
The statement pointed out that the Saudi Public Investment Fund leads the investment in the company through the PIPE mechanism, along with funds and accounts managed by BlackRock, Fidelity Management, Franklin Templeton, Newberger Berman, Wellington Management, and Wonesloo Capital Management
The deal represents the largest injection of funds into Lucid since the Saudi Public Investment Fund invested $ 1 billion in it in 2018
Founded in 2007 as Atieva, the company has spent years focusing more on battery technology than on developing a luxury car. Converted in 2016, she changed her name to Lucid.
Lucid plans to start delivering a $ 169,000 electric sedan to US customers in the second quarter.
The company's Air EV, which can travel more than 500 miles on a single charge, will be built at a plant in Arizona.
