Billion-Dollar Investment by Ayar (Saudi Arabia) in Lucid Group (LCID)
Lucid Group Secures $1 Billion Investment from PIF's Ayar
In a significant development, Lucid Group, Inc. (Nasdaq: LCID) has announced a private placement agreement with Ayar Third Investment Company, an affiliate of the Public Investment Fund (PIF), to purchase $1.0 billion of convertible preferred stock.
Peter Rawlinson, CEO and CTO of Lucid Group, expressed his pleasure about the continued support from the PIF, stating that it is a key differentiator for the company. The funds from the stock purchase will be used by Lucid Group to solidify its place as a leading EV technology company.
The net proceeds from the private placement will be utilised for general corporate purposes, including capital expenditures and working capital. Lucid Group plans to invest the funds in both its technology and vertically integrated manufacturing capabilities.
The agreement is subject to customary closing conditions, and the sale of the convertible preferred stock is being made in reliance on the exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933. The convertible preferred stock sold to Ayar will not be registered under the Securities Act of 1933.
It is important to note that the private placement does not alter the fact that the funds from the stock purchase will be used by Lucid Group to solidify its place as a leading EV technology company. Additionally, the private placement does not change Lucid Group's plans to invest the funds in both its technology and vertically integrated manufacturing capabilities.
The private placement does not affect Lucid Group's aim to accelerate its growth via deliveries, execute key business initiatives with a focus on cost, and launch its Gravity SUV later this year. The other investor in the founding of Lucid Group, Inc., besides Ayar Third Investment Company, is Ares Capital Corporation, which played the role of a financial backer.
This investment from Ayar Third Investment Company further strengthens Lucid Group's position in the EV market and positions the company well for its future growth and success.
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