Written by Cláudio Afonso | LinkedIn | X
Lucid Motors filed a new 8-K filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday after the market close announcing that is starting a public offering of 262,446,931 shares of its common stock.
Shortly after the announcement, Lucid shares are trading 11% lower at $2.91. The stock price reached a new record low in April at $2.29, down 96% from its all time high of nearly $65.
BofA Securities, the sole underwriter for the offering, may offer the shares on Nasdaq, in the over-the-counter market, or through negotiated transactions, with prices fluctuating based on market conditions or set at fixed or negotiated rates.
Ayar Third Investment Company, Lucid’s biggest shareholder — owning roughly 58.8% of the EV maker — and an affiliate of the Public Investment Fund (PIF), has indicated its intention to purchase 374,717,927 shares of common stock from Lucid in a private placement concurrent with the public offering.
According to the SEC filing, the acquisition is “subject to certain conditions, at the same price per share initially to be paid by the underwriter for the public offering”.
In addition, the EV maker led by Peter Rawlinson plans to grant the underwriter a 30-day option to purchase up to 39,367,040 additional shares.
This announcement comes a few minutes after the company filed a new shelf registration statement with the SEC.
The filing enables the electric vehicle maker to issue and sell a variety of securities over time, including common stock, preferred stock, debt securities, and warrants.
“We may offer, issue and sell, together or separately: shares of our common stock; shares of our preferred stock, which may be issued in one or more series,” the company said in a new SEC filing before detailing six other points.
“In addition, selling securityholders may offer and sell, from time to time, these securities on terms described in a prospectus supplement,” Lucid added.
The company closed the second quarter with $1.35 billion in cash and cash equivalents, slightly lower from $1.37 billion at the end of 2023, Lucid reported in early August.
The registration provides the EV maker with the flexibility to raise capital as needed, with the exact amounts, pricing, and terms of each offering to be finalized at the time of sale.
The company added it may use the proceeds from future sales for general corporate purposes, such as financing its operations, repaying debt, or potentially funding acquisitions.
“We expect to use the net proceeds from the sale of securities for general corporate purposes, including the financing of our operations, the possible repayment of indebtedness, and possible business acquisitions,” Lucid stated.
Lucid Motors produced 1,805 vehicles in the third quarter of the year while delivering 2,781 units.
As the company continues the expansion of its Saudi Arabia plant, production declined quarter over quarter from 2,110 vehicles to 1,805, a drop of about 14.5 percent.
The company noted that “approximately 8 percent,” which is about 222 units, were “subject to operating lease accounting.”
Deliveries between July and September marked a new record for the California-headquartered manufacturer and nearly doubled from the same period of 2023 when it delivered 1,457 units.
For this year, Lucid aims to produce 9,000 units.
At Morgan Stanley’s 12th Annual Laguna Conference, Lucid’s chief executive reiterated the company’s goal to scale from 9,000 EVs in 2024 to 1 million units in the early 2030s.
Lucid is preparing to start mass production of its second model Gravity late this year.
Written by Cláudio Afonso | LinkedIn | X
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