Lucid Shares Plunge Following Major Capital Raise Announcement

Lucid Group’s stock experienced significant downward pressure after the electric vehicle manufacturer disclosed terms for a substantial $875 million capital infusion. The equity decline of nearly 6% reflected immediate investor concerns about the company’s financial strategy.

The capital raise centers around convertible notes totaling $875 million placed with institutional investors. These financial instruments carry a 7% interest rate and mature in 2031. A key feature allows bondholders to convert their holdings into common stock at an initial price of $20.81 per share, representing a 22.5% premium over the previous trading session’s closing price.

An additional provision grants underwriters the option to issue further notes worth $100 million, potentially increasing the total offering to Read more...