Churchill Capital Corp. founder Michael Klein is raising $1 billion for a new SPAC

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Churchill Capital Corp. founder Michael Klein is looking to raise $1 billion for his eighth special purpose acquisition company, according to an S-1 regulatory filing from the SEC.

Klein’s Altc Acquisition Corp. plans to raise $1.0 billion by offering 100 million units at $10 each. The units contain one common share and one-sixth of a warrant share which is exercisable at $11.50.

Altc would hold a $1.3 billion valuation if the proposed deal goes through as-is. The SPAC isn’t targeting “any specific business combination target” and its common stock will be listed on the New York Stock Exchange under the ticker “ALCC.”

Citigroup, J.P. Morgan, Goldman Sachs, and Bank of America are the joint book-runners for the deal.

The former Citigroup banker Michael Klein has raised billions of dollars for seven SPACs over the past two years as a leader in the recent SPAC boom.

SPACs, or special purpose acquisition companies, are more popular than ever. In the first quarter of 2021 alone, $166 billion in SPAC merger deals were completeled, more than in all of 2020.

The rise in SPACs, along with poor returns seen from the blank check firms after going public, have caused short-sellers to triple their bets against SPACs in recent weeks.

Klein’s fourth blank check firm, Churchill Capital Corp. IV, illustrates the appeal of SPACs to short sellers.

CCIV’s stock shot up after rumors of a merger deal with the electric-vehicle maker Lucid Motors were reported on Jan 11. However, once the deal with Lucid finally went through, shares of CCIV crashed as investors balked at the combined entities’ valuation. The stock was down over 50% less than a week after the deal to acquire Lucid was officially announced.

Not long after CCIV plummeted following the Lucid deal, Klein raised $1.68 billion for his sixth and seventh SPACs.

Now Klein is joining forces with Y Combinator’s Sam Altman to raise money for another blank check firm.

Altman is well known for co-founding OpenAI and for his time at the Silicon Valley startup accelerator Y Combinator, which helped companies like Airbnb and Dropbox Inc., among others, get their start.

He adds his name to a growing list of investors, hedge fund managers, and even celebrities moving into SPACs.

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Churchill Capital Corp. IV has plunged over 50% since announcing long-awaited Lucid Motors deal

Lucid Air.
Lucid Air.

Churchill Capital Corp. IV has plunged over 50% in a two-day skid since announcing the long-awaited Lucid Motors deal on Monday. 

For months, investors bought the stock on rumors of a deal, sending the share price surging, only to sell off sharply once news broke that the Michael Klein-backed SPAC would merge with the luxury EV maker.

The Newark, California-based Lucid Motors combined with Churchill Capital Corp. IV at a transaction equity value of $11.75 billion and a pro-forma equity value of $24 billion.

The transaction included a cash contribution from CCIV of $2.1 billion, and a PIPE investment of $2.5 billion, as well as a lock-up provision that “binds holders well beyond closing.”

Shares of the SPAC Churchill Capital Corp. IV originally soared roughly 600% after a Jan. 11 report from Bloomberg said the company was in talks to take the EV maker public.

Investors flocked to the blank-check firm amid a run on electric vehicles stocks, which are set to benefit from a “Biden Administration and Blue Senate green tidal wave,” according to analyst Dan Ives of Wedbush Securities.

Lucid’s efficient battery tech that CEO Peter Rawlinson has said is “more advanced technology than Tesla” also drew in investors, despite valuation concerns for the company that has yet to produce revenues from operations.

The Lucid Air sedan also undoubtedly attracted attention to the EV manufacturer. The company’s first EV is aimed at the Tesla Model S and boasts a 9.9-second quarter-mile timesuper fast charging, and a 517-mile range

With prices starting at $77,400 ($69,900 after the US federal tax credits) Lucid is setting its sights on the luxury end of the elecric car market. The company is starting sales with its luxury models including the Air Dream Edition.

Peter Rawlinson told Yahoo Finance in October of last year that he thinks “it’s really important that we start at a high-end position as a true luxury brand.”

“I’m a great believer that the first product defines the brand in the way the Tesla model S defined Tesla as a brand,” the CEO said.

After the Dream Edition rollout, Lucid expects to release its Gravity performance SUV by 2023. Helping the company do just that is a state-of-the-art Casa Grande, Arizona EV factory that will eventually produce roughly 365,000 vehicles annually.

Shares of CCIV fell nearly 20% on Wednesday, dropping under the $30 per share mark for the first time since February 4.

CCIV chart.
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Churchill Capital IV soars 33% after report says the SPAC is nearing a deal to take EV maker Lucid Motors public

Lucid Air exterior_7
Lucid Air.

  • Churchill Capital Corp IV is reportedly in talks with Lucid Motors to take the company public.
  • The SPAC has seen its share price jump over 300% since rumors of the merger first became public on Jan 11.
  • If the merger goes through, Lucid will be one of the over 130 companies to go public via SPAC this year.
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Churchill Capital Corp IV soared as much as 33% on Tuesday after a report from Reuters suggested the company is close to a deal to take electrive vehicle maker Lucid Motors public at a valuation of around $12 billion.

The Michael Klein-backed SPAC is reportedly in talks with investors to raise between $1 and $1.5 billion for the transaction by selling shares in a PIPE. These funds would be an additional boost to the $2 billion Churchill Capital IV raised from its IPO in July.

According to Reuters, Lucid and Michael Klein have agreed on key terms of the deal, which could be announced as early as this month.

Churchill Capital IV declined to comment on the deal, and Lucid Motors did not immediately respond to Reuters’ request for comment. Both companies did not immediately respond to Insider’s request for comment.

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If the deal goes through, it would be yet another successful SPAC merger for the former Citigroup executive Michael Klein who raised another $1.6 billion for his sixth and seventh SPACs on Monday.

Rumors of a potential deal between the Michael Klein SPAC Churchill Capital IV and Lucid started back on Jan. 11 when Bloomberg first reported the two companies were in talks for a potential merger.

Subsequently, shares of Churchill Capital have jumped more than 300% as investors continue to target any news in the red hot EV market.

Lucid Motors was founded in 2007 as a battery company called Atieva by former Tesla executive Bernard Tse and entrepreneur Sam Weng.

Since then, the company has transitioned to a full-fledged EV manufacturer that focuses on luxury offerings. Lucid’s first EV, the Lucid Air, will take aim at the Tesla Model S with its base price of $77,400, a 517 miles of range, and a 9.9-second quarter-mile time.

Lucid also boasts a Casa Grande, Arizona factory that will eventually produce 400,000 vehicles annually, according to the company. 

Read more: GOLDMAN SACHS: These 40 heavily shorted stocks could be the next GameStop if retail traders target them – and the group has already nearly doubled over the past 3 months.

Churchill’s move to merge with Lucid Motors follows a long line of new EV entrants to the public markets over the past few years.

From Chinese EV manufacturer Nio to the Ohio-based Lordstown Motors, EV makers are booming, and SPACs are often their method of choice for entering public markets. More than 130 companies have now gone public via a SPAC merger or buyout in 2021 in what some are calling a SPAC boom.

While some of these SPAC entries have paid off for investors, others haven’t been as fruitful.

Lucid rivals Nikola and Fisker both went public via mergers with SPACs in 2020, and while Fisker has posted strong gains, much of Nikola’s gains have been erased as EV entrants are facing increasing competition.

Still, shares of CCIV responded positively to the news, trading up 32.44%, at $52.95, as of 3:56PM ET on Tuesday.

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Churchill Capital IV rallies 13% amid new signs it’s seeking to acquire Lucid Motors from an investing consortium led by Venrock Associates

Lucid Air.
Lucid Air.

  • VC firm Venrock Associates and a consortium of investors proposed the sale of Lucid Motors to CCIV, according to a Bloomberg terminal update.
  • Lucid and Churchill Capital IV have been rumored to be in merger talks since January 11.
  • The news comes as Lucid plans on releasing its first production vehicle this spring.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Churchill Capital IV’s (CCIV) stock rallied as much as 13% Friday amid new signs the company is seeking to acquire EV maker Lucid Motors from an investing consortium led by VC firm Venrock Associates.

According to a Bloomberg terminal news update, CCIV began talks with Venrock Associates and a group of Lucid investors on Thursday, but the financial terms of the potential deal haven’t yet been disclosed.

Venrock Associates is one of the oldest investors in Lucid. The VC firm first bought into the company back in 2009 in a $7 million Series B financing round when Lucid was still a small battery manufacturer called Atieva.

Now Venrock is looking to turn that relatively small investment into a much larger gain by selling its holdings to Michael Klein’s SPAC Churchill Capital IV.

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Rumors of a potential Lucid Motors sale or merger with CCIV have been circulating for some time.

On Jan 11, Bloomberg first reported Lucid Motors was in talks to go public via a merger with the special purpose acquisition company. The news caused a 50% rise in CCIV’s share price in just two days. Since then, the stock has appreciated over 240% as investors continue to value the SPAC as if a deal with Lucid is in the works.

Now investors may be getting what they’re looking for, as the most recent news is yet another sign that CCIV and Lucid will eventually merge.

Lucid Motors first gained attention in the media with the release of its luxury EV, the Lucid Air. Even the base model of the electric vehicle will offer a range of 406 miles and a 0-60 of 2.5 seconds. The company says it will start at $69,900 with the incorporation of federal tax credits as well.

Lucid also earned headlines recently after opening a production facility in Casa Grande, Arizona, where it plans on eventually manufacturing 400,000 vehicles per year.

Although for now, there will be limited production of the company’s flagship model, the Air Dream Edition, which starts at $169,000 and will offer 1,080 horsepower and a range of 517 miles.

Lucid plans on producing its first saleable cars out of the Casa Grande factory this spring.

Churchill Capital IV traded up about 13%, at $35.60 per share, as of 9:56AM E.T. on Friday.

Read More: Barclays says buy these 33 beaten-down stocks that are perfectly poised to capitalize on the reopening of the economy in the years ahead.

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Churchill Capital Corp IV extends 2-day surge to over 50% on news of plans to take Lucid Motors public via SPAC

Electric vehicle charging.
Electric vehicle charging.

  • Shares of Churchill Capital Corp. IV are up over 50% in a two-day streak to start the week.
  • News of the SPAC potentially taking EV company Lucid Motors public is driving the share price higher.
  • The fourth of seven ‘blank-check’ companies operated by Michael Klein, Churchill Capital Corp. IV’s plan for Lucid Motors would keep the SPAC craze going in 2021.
  • Sign up here our daily newsletter, 10 Things Before the Opening Bell.

Shares of Churchill Capital Corp IV soared to start the week on news the special purpose acquisition company is in talks to take Lucid Motors public, per Bloomberg.

Churchill Capital Corp IV is operated by veteran Wall Street dealmaker Michael Klein, and is the fourth of seven ‘blank-check’ companies which Klein has been using to take partner companies public.

In this case, the partner firm is Lucid Motors, a relatively well-established EV manufacturer based out of Newark, California, and which targets the luxury end of the car market. The deal could potentially value Lucid at $15 billion, according to Bloomberg. 

Read more: Goldman Sachs says to buy these 29 stocks poised to deliver the strongest sales growth through year-end

Lucid is yet another competitor in an increasingly crowded EV space. However, the company has a little more going for them than many of its competitors.

Lucid boasts world-class EV tech and is owned in part by the Public Investment Fund of Saudi Arabia after a 2019 funding round valued at over $1 billion.

In the past year, the news around Lucid heated up significantly, especially after the company’s September announcement of their first full-sized EV, the Air.

Starting at $77,400 ,the Air features a 9.9 second quarter-mile and fast-charging that captures 300 miles of new EV range in just 20 minutes.

Shares of Churchill Capital Corp IV are trading close to $15 after hovering around the $10 mark for months. The SPAC was the third most traded name among Fidelity customers as of Tuesday morning, behind EV makers Nio and Tesla, according to data from Fidelity.

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