On May 24, 2024, in San Francisco, California, the new Lucid electric vehicle was parked in front of the Lucid Studio showroom.
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shares sobriety group The company fell more than 10% in after-hours trading after the electric vehicle startup announced a public offering of nearly 262.5 million shares of its common stock.
The announcement comes alongside plans by Lucid’s majority shareholder and Saudi subsidiary. public investment fundAyar Third Investment Co. purchased more than 374.7 million common shares from Lucid in a “simultaneous private placement and public offering”.
Upon completion of the transaction, Ayar expects to maintain its ownership of approximately 58.8% of Lucid’s outstanding common stock, Lucid said in a press release.
Lucid said the deal is subject to “certain conditions and that the underwriters would initially pay the same price per share for the public offering.”
BofA Securities serves as the exclusive underwriter for the public offering. The electric vehicle maker intends to grant the company a 30-day option to purchase up to an additional nearly 39.37 million shares of Lucid common stock.
Lucid intends to use the net proceeds from the public offering and its private placement with its majority shareholder “for general corporate purposes, which may include capital expenditures and working capital,” the company said.
The deal announced comes after Lucid said PIF has agreed to provide the company with $1.5 billion in cashas the electric car maker looks to add new models to its lineup.
Lucid ended the second quarter with cash and cash equivalents of $1.35 billion, compared with $1.37 billion at the end of 2023.
Lucid’s Sales and Financial Results Didn’t meet initial expectations Progress is slower than expected after costs rise Demand for electric vehicles Marketing and awareness issues for companies.
Lucid’s stock price has fallen 22% this year. The stock closed Wednesday at $3.28 a share, up less than 1%. The company has a market capitalization of $7.6 billion. It has 2.32 billion shares outstanding.
