Big Law
A Reverse Merger Deal Between Lucid Motors and Churchill Capital Goes Public
A record reverse merger deal between Lucid Motors and Churchill Capital Corp IV sent shares of the SPAC run by well-known investor Michael Klein tumbling in midday trading Tuesday.
The price of the stock of the special purpose acquisition company, or SPAC, was nearly cut in half to $30 in intraday trading. The shares recovered slightly to close at $35.21 a share, down 38.6%.
The drop comes after shares of Churchill rose by more than 470% after it was first reported that the companies were in talks for a merger last month. Informally announcing the deal Monday night, the companies confirmed a delay in deliveries of its first car – a luxury sedan called the Air – from this spring until the second half of this year.
