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Lucid Group (LCID) Paves the Way for Certain Investors to Potentially Sell Up to $8 Billion Worth of Shares | #1 Technology News Source by Kalen2utech
Published On: Tue, Aug 30th, 2022

Lucid Group (LCID) Paves a Way for Certain Investors to Potentially Sell Up to $8 Billion Worth of Shares

This is not investment advice. The author has no position in any of a bonds mentioned. Wccftech.com has a avowal and ethics policy.

Lucid Group shares seem to have left nowhere over a past few months, absolutely ensconced in their apparent inclination for a sub-$20 batch price. Against this backdrop, a new hazard has emerged that competence remove capitulatory movement from some undone investors.

To wit, Lucid Group has now filed a Form S-3 with a SEC, paving a approach for some of a “selling securityholders” to dump as many as $8 billion value of shares.

Lucid Group, Inc. competence from time to time offer and sell common stock, elite stock, depositary shares representing elite stock, debt securities, warrants, squeeze contracts or units in one or some-more offerings of adult to $8,000,000,000 in total charity price. In addition, this handbill relates to a distribution by us of adult to 44,350,000 shares of a Company’s Class A common stock, standard value $0.0001 per share (“common stock”), consisting of (a) 42,850,000 shares of common batch that are issuable on practice of a Private Placement Warrants (as tangible below) and (b) 1,500,000 shares of common batch issuable on practice of a Working Capital Warrants (as tangible below).

Bear in mind that a “selling securityholders” collectively possess a following instruments in propinquity to Lucid Group:

  • 189 billion common shares, that include of 1.115 billion superb shares, 29.936 million common shares that are issuable on vesting and/or practice of Legacy Lucid Awards, and 44.35 million common shares that are issuable on a practice of private chain and operative collateral warrants.
  • 35 million private chain and operative collateral warrants

Lucid Group does mount to accept $510 million if a private chain and operative collateral warrants are exercised in full for cash.

This filing has now increasing a odds that a Saudi PIF competence prune a enormous interest in Lucid Group in a days to come. As per a many new Form 13-F filed by a Saudi PIF with a SEC in August, a emperor resources account confirmed a 62.7 percent interest in Lucid Group, consisting of 1,015,252,523 shares. As of a finish of June, a emperor resources fund’s interest in Lucid Group was valued during $17.42 billion.

Readers should note that Lucid Group constitutes a status plan for a Saudis, who are now posterior assertive non-oil automation and de-carbonization strategies. As one of a initial vital Western EV manufacturers to settle a element prolongation footprint during a King Abdullah Economic City (KAEC) around a arriving 155,000-units-per-year production facility, Lucid Group’s significance to Saudi Arabia’s immature focus can’t be ignored. However, now that a Kingdom has supposing a association with $3.2 billion in incentives over a 15-year duration for this production facility, joined with a enormous sequence of adult to 100,000 EVs, a Saudis competence feel that adequate support has been supposing to a nascent EV player, thereby paving a belligerent for a deployment of their collateral to newer pastures.

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