Lucid Motor Inc., the Newark, California-headquartered American luxury e-vehicle manufacturer has been nearing an SPAC (Special Purpose Acquisition Company) deal with a Klein-backed blank-check firm which in effect would take the 13-year-old e-vehicle manufacturer public at a valuation of roughly $12 billion as veteran dealmaker Michael Klein’s SPAC firm had rolled out a financing round in order to fund the transaction, a press agency report published late on Tuesday had unveiled citing unnamed sources given the scale of sensitivity of the issue.
In factuality, as US equity markets had been witnessing a maverick high-tide in SPAC-backed route to go public, a decipherable merger deal between Lucid Motors and Klein-backed SPAC Churchill Capital IV Corp would likely to be the largest among a series of SPAC deals made by e-vehicle start-ups such as Fisker Inc and Nikola Corp to go public.
SPACs or blank-check firms are shell entities which are usually capitalized on taking a company public within two years of a merger or acquisition, while SPAC firms are allowed to raise funds in IPOs alongside other fundraising campaigns in order to finance the merger deals without telling their investors about the mergers or acquisitions that they have been pursuing.
Churchill Capital IV resume talks to raise over $1bn in PIPE transactions
In tandem, the press agency report published late in the day had also quoted one of the sources familiar with the subject-matter as saying that a Klein-backed SPAC, Churchill Capital IV Corp., had already been an advanced staged talk with investors to shelve over $1 billion by selling shares in a PIPE (Private Investment in Public Equity) to finance a merger deal with Lucid, while the size of Churchill Capital IV Corp.
PIPE could top $1.5 billion as well, added the sources. Apart from the funds which Churchill Capital IV Corp. has planned to raise by selling shares in PIPE transactions, the blank-check firm had also coffered a stark upsum of $2 billion in an NYSE IPO (Initial Public Offerings) in July last year to back its merger with Lucid Motors.
Meanwhile, as the sources had also added that the Californian e-vehicle start-up alongside Klein had already agreed to the terms of a merger deal, had Churchill Capital IV Corp. been able to conclude its latest PIPE fundraising proceedings successfully, a deal could be announced as early as late-February, said the sources.