Lucid Motors is a future electric car manufacturer who is targeting the second half of the year to begin marketing. Like many of its competitors, it also hopes to go public as soon as possible to protect itself from the hell of access to capital for emerging car brands.
To join Wall Street, Lucid Motors is counting on a merger in the form of a SPAC with the blank check company Churchil Capital Corp IV (CCIV). A contract at 4.5 billion dollars that will allow it to go public quickly and more simply than by a direct listing.
It has been months since the listing has been scheduled and Lucid Motors has confirmed on several occasions that it will use the vehicle of CCIV, enough to increase the share price of the company, particularly during the month of March. The exchanges were packed. Lucid Motors’ future stock was rising 100%.
By appealing to the patience of all stakeholders, the manufacturer requested a final waiting period by further postponing the date of the merger with the PSPC. However, this last request has a much more unusual explanation than a case of administrative red tape. The email for the signing of the contract would have ended in the “junk mail” section of many shareholders, who could not return the document on time.
The letter in question contained the final points to define the terms of the contract. A large part of the shareholders concerned did not return the document on time and the new deadline was pushed back to tomorrow, Friday 23 July. “Vote now to avoid further delay,” read a statement sent on Thursday.
Our brothers and sisters of The Verge attended the telephone meeting organized yesterday by Lucid Motors and Churchil Capital Capital Corp IV. It was on this occasion that the explanation was given. “I know some of these emails may have gone to your spam folder. But it is essential and important to vote and to have the tools to vote. […] I have to remind you to check your emails and check your spam ”, addressed as a message the president of CCIV to the shareholders.
CCIV was one of the most traded PSPCs in 2021 and the number of retail investors is huge. This would also explain the difficulty for Lucid Motors to collect enough votes to pass the stage of validating these terms of the merger contract. For example, on online brokerage platforms like Robinhood in the United States, many email addresses referred to clients who had already resold their shares. Difficult to make contact with the smallest investors far from being necessarily aware of the presence of this vote.
Lucid Motors’ Misadventures
This is not the first time that Lucid Motors has encountered difficulty in spilling ink. In mid-March, another mishap with far-reaching consequences was discovered. Following an error in an article published by Bloomberg, many investors had turned to Churchill Capital IV as the news agency had presented the blank check company as the future SPAC of Lucid Motors.
“Of the five different special purpose acquisition companies that Lucid Motors was discussing, Churchill Capital IV was not on the list…”, revealed Motley fool and its investment specialists. With this erroneous report, Bloomberg forced talks between the two companies, when Churchill Capital IV was originally created to merge with a totally different company: the subsidiary DIRECTV, of AT&T.
“Following the Bloomberg article, Churchill began to explore a possible business combination with Lucid due to his interest in the electric vehicle industry,” Lucid Motors confirmed in its report.