Lucid Group shares appear to have gone nowhere over the past few months, comfortably ensconced in their apparent proclivity for a sub-$20 stock price. Against this backdrop, a new threat has emerged that might extract capitulatory action from some frustrated investors.
To wit, Lucid Group has now filed a Form S-3 with the SEC, paving the way for some of its “selling securityholders” to dump as much as $8 billion worth of shares.
Lucid Group, Inc. may from time to time offer and sell common stock, preferred stock, depositary shares representing preferred stock, debt securities, warrants, purchase contracts or units in one or more offerings of up to $8,000,000,000 in aggregate offering price. In addition, this prospectus relates to the issuance by us of up to 44,350,000 shares of the Company’s Class A common stock, par value $0.0001 per share (“common stock”), consisting of (a) 42,850,000 shares of common stock that are issuable upon exercise of the Private Placement Warrants (as defined below) and (b) 1,500,000 shares of common stock issuable upon exercise of the Working Capital Warrants (as defined below).
$LCID Files $8B mixed shelf (29.6% of market cap) and to sell up to 44.4M shares (Lucid Group Inc. Common Stock)
(More at https://t.co/1jNEkStLDI)
— TradeTheNews.com (@Trade_The_News) August 30, 2022
Bear in mind that the “selling securityholders” collectively own the following instruments in relation to Lucid Group:
- 1.189 billion common shares, which include 1.115 billion outstanding shares, 29.936 million common shares that are issuable upon vesting and/or exercise of Legacy Lucid Awards, and 44.35 million common shares that are issuable upon the exercise of private placement and working capital warrants.
- 35 million private placement and working capital warrants
Lucid insiders / PIF are selling as part of their $8 billion offering $LCID
— Whole Mars Catalog (@WholeMarsBlog) August 30, 2022
Lucid Group does stand to receive $510 million if the private placement and working capital warrants are exercised in full for cash.
This filing has now increased the likelihood that the Saudi PIF might pare its gigantic stake in Lucid Group in the days to come. As per the most recent Form 13-F filed by the Saudi PIF with the SEC in August, the sovereign wealth fund maintained a 62.7 percent stake in Lucid Group, consisting of 1,015,252,523 shares. As of the end of June, the sovereign wealth fund’s stake in Lucid Group was valued at $17.42 billion.
Readers should note that Lucid Group constitutes a prestige project for the Saudis, who are currently pursuing aggressive non-oil industrialization and de-carbonization strategies. As one of the first major Western EV manufacturers to establish a material production footprint at the King Abdullah Economic City (KAEC) via the upcoming 155,000-units-per-year manufacturing facility, Lucid Group’s importance to Saudi Arabia’s green pivot can’t be ignored. However, now that the Kingdom has provided the company with $3.2 billion in incentives over a 15-year period for this manufacturing facility, coupled with a gigantic order of up to 100,000 EVs, the Saudis might feel that enough support has been provided to the nascent EV player, thereby paving the ground for the deployment of their capital to newer pastures.
The post Lucid Group (LCID) Paves the Way for Certain Investors to Potentially Sell Up to $8 Billion Worth of Shares by Rohail Saleem appeared first on Wccftech.