BOUNCE

[cintrix]

LCID down 11% Lucid Group (NASDAQ:LCID) is down sharply in early trading on the PIPE lockup expiration date for early investors. The largest PIPE investor in Lucid is Saudi Arabia's sovereign wealth fund, which is not anticipated to be big seller of shares. Other PIPE investors include BlackRock, Fidelity Management and Research, Franklin Templeton and Neuberger Berman. https://seekingalpha.com/news/3735956-lucid-group-slides-as-pipe-lockup-expiration-date-hits?utm_campaign=twitter_automated&utm_content=news&utm_medium=social&utm_source=twitter_automated

The lower 12-month price target takes into consideration the upcoming lock-up period expiration for the PIPE and requirement for warrant-holders to exercise their purchasing rights, which will introduce additional Lucid shares to the market and place pressure on the stock’s price performance. The investor lock-up period is set to expire on September 1st, which will allow the PIPE to offload some of its shares initially priced at $15.00 apiece (implied pro forma equity value of $24 billion) for the current market price of above $20. And Lucid’s warrants, which grants holders the right to buy additional shares at a fixed price of $11.50 apiece within a five-year period no matter how high the stock price soars, is set to become “wiped out” as well, as a clause within the prospectus specifies that any unexercised warrants will be deemed ineffective if Lucid trades above $18 for 20 of 30 trading days, which the stock is fast-approaching. https://seekingalpha.com/article/4452329-lucid-motors-stock-like-tesla?utm_campaign=twitter_automated&utm_content=article&utm_medium=social&utm_source=twitter_automated