If you've been following the podcast for a while, you know that I've covered Lucid Motors and CCIV extensively. Well today, February 22nd, 2021, Lucid Motors announced that they are going through with the proposed merger with Churchill Capital Corp IV. It's been a long time coming. But what's with this huge 30% sell-off in after hours? Let's talk about it. CCIV and Lucid are combining at a transaction equity value of $11.75 billion. The transaction includes an approximately $2.1 billion cash contribution by CCIV and a $2.5 billion, fully committed PIPE with an investor lock-up provision that binds holders well beyond closing. The PIPE is priced at $15.00 per share (a 50% premium to CCIV’s net asset value) with an implied pro forma equity value of $24 billion.
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