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Lucid Group shares seem to have gone nowhere over the previous few months, comfortably ensconced of their obvious proclivity for a sub-$20 inventory worth. Against this backdrop, a brand new risk has emerged which may extract capitulatory motion from some annoyed traders.
To wit, Lucid Group has now filed a Form S-3 with the SEC, paving the best way for a few of its “selling securityholders” to dump as a lot as $8 billion value of shares.
Lucid Group, Inc. might sometimes provide and promote frequent inventory, most well-liked inventory, depositary shares representing most well-liked inventory, debt securities, warrants, buy contracts or models in a number of choices of as much as $8,000,000,000 in mixture providing worth. In addition, this prospectus pertains to the issuance by us of as much as 44,350,000 shares of the Company’s Class A standard inventory, par worth $0.0001 per share (“common stock”), consisting of (a) 42,850,000 shares of frequent inventory which can be issuable upon train of the Private Placement Warrants (as outlined under) and (b) 1,500,000 shares of frequent inventory issuable upon train of the Working Capital Warrants (as outlined under).
$LCID Files $8B blended shelf (29.6% of market cap) and to promote as much as 44.4M shares (Lucid Group Inc. Common Stock)
(More at https://t.co/1jNEkStLDI)
— CommerceTheInformation.com (@Trade_The_News) August 30, 2022
Bear in thoughts that the “selling securityholders” collectively personal the next devices in relation to Lucid Group:
- 1.189 billion frequent shares, which embody 1.115 billion excellent shares, 29.936 million frequent shares which can be issuable upon vesting and/or train of Legacy Lucid Awards, and 44.35 million frequent shares which can be issuable upon the train of personal placement and dealing capital warrants.
- 35 million personal placement and dealing capital warrants
Lucid insiders / PIF are promoting as a part of their $8 billion providing $LCID
— Whole Mars Catalog (@WholeMarsWeblog) August 30, 2022
Lucid Group does stand to obtain $510 million if the personal placement and dealing capital warrants are exercised in full for money.
This submitting has now elevated the chance that the Saudi PIF may pare its gigantic stake in Lucid Group within the days to return. As per the latest Form 13-F filed by the Saudi PIF with the SEC in August, the sovereign wealth fund maintained a 62.7 % stake in Lucid Group, consisting of 1,015,252,523 shares. As of the top of June, the sovereign wealth fund’s stake in Lucid Group was valued at $17.42 billion.
Readers ought to be aware that Lucid Group constitutes a status undertaking for the Saudis, who’re at the moment pursuing aggressive non-oil industrialization and de-carbonization methods. As one of many first main Western EV producers to determine a cloth manufacturing footprint on the King Abdullah Economic City (KAEC) through the upcoming 155,000-units-per-year manufacturing facility, Lucid Group’s significance to Saudi Arabia’s green pivot can’t be ignored. However, now that the Kingdom has supplied the corporate with $3.2 billion in incentives over a 15-year interval for this manufacturing facility, coupled with a big order of as much as 100,000 EVs, the Saudis may really feel that sufficient assist has been supplied to the nascent EV participant, thereby paving the bottom for the deployment of their capital to newer pastures.