- Churchill Capital Corporation IV is set to close on its merger of EV start-up Lucid Motors on Friday.
- The closing of the merger was delayed earlier this week after not enough shareholders had cast a vote on the deal.
- It took a personal appeal to retail investors from Churchill chairman Michael Klein to get approval.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Shareholders of Churchill Capital Corporation IV approved its merger with EV start-up Lucid Motors following a personal appeal by Churchill chairman Michael Klein to retail investors using trading apps like Robinhood.
The merger deadline was extended on Thursday after not enough shareholders had voted.
“We welcome all of the new shareholders,” Klein said in an investor call on Thursday. “However, we need you to participate in the election process. In particular, if you are participating from the new trading platforms, the new apps that may not necessarily be directing you clearly to a voting service, we need your vote,” Klein said, adding that it “literally takes one minute.”
Churchill Capital has been a popular SPAC stock with retail investors, but it is likely less so after falling 63% from its mid-February peak of $64.84. The SPAC was often a top-mentioned name on Reddit’s Wall Street Bets forum.
Klein also said that e-mail spam filters could have played a role in so few shareholders participating in the scheduled vote and approving the deal on time.
“It should have been mailed or emailed to all stockholders. I know this is technical. And I know that some of those emails may have gone into your spam folder or otherwise. But it’s critical and important to vote and to have the tools to vote,” Klein said. “I need to remind you to check your emails, and check your spam emails.”
Ultimately, 98% of votes cast were in support of the proposed merger between Churchill and Lucid. Shares of the company were up as much as 7% in Friday trades.
Lucid Motors will delist from the New York Stock Exchange and trade on the Nasdaq under the symbol “LCID” beginning on July 26.