SEC investigates electric car maker Lucid in Spac deal

Lucid Motors, an electric vehicle group published in one of the largest Spac deals in history, has been investigated by U.S. regulators for disclosures and forecasts made at the time of listing, and is one of Wall Street’s hottest investment trends. I’m throwing clouds at one.

Lucido predicts that the Securities and Exchange Commission will send a subpoena on December 3 to merge with Churchill Capital Corp IV, a special-purpose acquisition company run by former Citigroup investment banker Michael Klein. Said he requested a document on the statement.

Lucid’s share price fell more than 10% on Monday, clearing billions of dollars in market capitalization. Lucid’s Spac merger, Announced in February It was closed in late July, giving the electric vehicle company a $ 24 billion equity value and raising $ 4.4 billion through private placement with Klein’s Spac.

According to data compiled by Sentieo, the private placement raised investments from Saudi Arabia’s public investment fund and US-based asset management firms BlackRock, Fidelity, Franklin Templeton and Winslow Capital Management. According to the data, Spac sponsor Churchill Capital owns approximately $ 1.3 billion worth of shares as of Friday’s closing.

“There is no guarantee as to the scope or outcome of this issue, but the investigation is related to the business combination between us (f / k / a Churchill Capital Corp. IV) and Atieva, Inc, and certain forecasts and statements. Lucid said in securities filing that he is fully cooperating with the SEC.

The California-based company is the latest publicly offered electric vehicle manufacturer through Spac, and U.S. regulators say that companies listed via blank check cars will go public in the past. I am concerned that I am avoiding a kind of standard monitoring of the group. Recruitment process.

Electric truck maker Nicola recently secured $ 125 million to settle the SEC probe. Its founder, Trevor Milton, has been charged with misleading investors, and rival Lordstown is also coming. Under investigation By the SEC and the Federal Prosecutor in connection with the information published about pickup truck pre-orders.

According to bankers, this year’s strengthening of SEC enforcement will allow some companies considering acquisitions of Spac to openly choose to merge Spac instead of pursuing other routes. Brought a chilling effect.

July, SEC fine Stable Road Acquisition Company and its sponsor Brian Kabot have “successfully tested” space propulsion technology in connection with the merger with space infrastructure company Momentus, but in reality the company’s only test failed. It has been with.

“This lawsuit presents the inherent risks of a Spac transaction, as people in a position to make significant profits from the Spac merger may perform inadequate due diligence and mislead investors.” SEC Chair Gary Gensler filed a lawsuit in July.

After Lucid went public, the stock soared, with little profit and still a big loss, but temporarily overtook Ford in last month’s valuation.

Despite the early stages, investors are confident that the company, led by former Tesla engineer Peter Rawlinson, will follow the success of Elon Musk’s automaker.

The share of other electricity-focused car start-ups like Amazon-backed Rivian has also risen this year, well above the profits seen among established car makers.

The SEC and Lucid declined to comment.

SEC investigates electric car maker Lucid in Spac deal

Source link SEC investigates electric car maker Lucid in Spac deal

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