The deal to take Lucid Motors publid has hit a stumbling block after it failed to get enough support from investors during a recent shareholder meeting.
Churchill Capital IV, a special purpose acquisition company, intends on merging with Lucid to take the electric car manufacturer public. On Thursday, it held a vote for investors to approve the merger. According to The Financial Times, 97 per cent of investors that voted did so in favor of the planned merger; however, a large percentage of investors failed to vote at all.
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“The company still needs additional votes to obtain approval for that proposal by a majority of its outstanding shares,” the SPAC confirmed in a statement. “As a result, the meeting has been adjourned to obtain the required votes.”
Advisors working for Churchill Capital IV and Lucid have taken to Reddit and StockTwits to reach out to investors regarding the merger. During an investor call, Michael Klein, the man behind the SPAC, encouraged shareholders to check their emails and to vote so the merger can proceed.
“Every single investor vote counts, whether you are a Robinhood trader or managing your portfolio via a traditional brokerage — please, please vote,” Lucid chief executive Peter Rawlinson added.
Churchill Capital IV became popular among amateur investors earlier this year when talk of the merger with Lucid was first confirmed, resulting in its share price going up by nearly 500 percent. The deal with Lucid will result in a valuation of $24 billion, with the electric vehicle startup raising $4.4 billion in cash.
