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The Daily Dish (2/23/21)

Welcome to the Daily Dish. Every morning in your inbox subscribers receive some Dishes that we find interesting and we think that you should know more about.

We’ll try to lob ‘em up to you in a simple, clean format that you can read in 5 minutes before the market opens. (Trust me, we know what it’s like to wake up at 9:23am).

Here’s the first assist 👇

Electric vehicle firm Lucid Motors to go public in $11.8 billion SPAC deal

Embargoed H/O (7 p.m. Sept. 9, 2020): Lucid Air Sedan white exterior
  • Electric vehicle firm Lucid Motors plans to go public at an $11.75 billion combined equity valuation and $24 billion pro-forma equity value through a reverse merger with a blank-check company started by veteran investment banker Michael Klein.

    The deal between Newark, California-based Lucid and Churchill Capital Corp IV is the largest in a series of such tie-ups involving EV companies and blank-check firms. The deal will generate about $4.4 billion in cash for expansion plans for Lucid, including its current factory in Arizona.

  • Lucid is led by ex-Tesla engineering executive and automotive veteran Peter Rawlinson, who joined the company as chief technology officer in 2013 before adding CEO to his responsibilities in April 2019. He will continue in those roles following the expected closure of the deal in the second quarter, according to the companies. Lucid was founded in 2007 as Atieva, a name it now uses for its engineering and tech arm that supplies batteries to electric racing circuit Formula E. The company first focused on electric battery technology before changing its name and shifting to an electric vehicle manufacturer in 2016, three years after Rawlinson joined the company to lead its technology development.

  • Lucid currently employs nearly 2,000 people, with 3,000 employees expected to be added in the U.S. domestically by the end of 2022, according to the company.

    The deal includes a total investment of about $4.6 billion. It is being funded by $2.1 billion in cash from CCIV and a $2.5 billion fully committed PIPE at $15 per share by Saudi Arabia’s sovereign wealth fund as well as funds and accounts managed by BlackRock, Fidelity and others.

Michael Dell Forms New ‘Blank Check’ SPAC, Seeks $575M IPO

Michael Dell Talks About the Benefits of Running a Private Company |  IndustryWeek
  • Dell Technologies Chairman and CEO Michael Dell is seeking to raise upward of $575 million for his newly formed “blank check” acquisition company through an initial public offering.

    “MSD Acquisition Corp. is a newly organized blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities,” said the company in a filing with the U.S. Securities and Exchange Commission.

  • The new special purpose acquisition company (SPAC) is aiming to sell 50 million investment units at $10 each, with each including one Class A share and 0.2 warrants to purchase a second one at $11.50 in the future, bringing the total IPO value to $575 million. MSD Acquisition will apply to have its units listed on the Nasdaq under the symbol $MSDAU. MSD Capital and MSD Partners already have agreed to buy up to 5 million investment units at $10 each once the SPAC close on its first merger deal.

  • MSD Acquisition’s founding partners include executives from MSD Capital and MSD Partners, part of Michael Dell’s family office, and which combined manage over $19 billion and employ approximately 110 people. These executives include CEO Gregg Lemkau, who is CEO of MSD Partners and previously worked at Goldman Sachs; Chairman John Phelan, who co-founded MSD Capital; and CFO John Cardoso, who is chief investment officer of MSD Partners and MSD Capital.

Schiller, Falk Sports SPAC Pulled In Over $1 Billion in IPO Orders

  • Goal Acquisition, the sports-focused blank check firm formed by Harvey Schiller and David Falk, had strong investor interest during its initial public offering pricing, with enough demand to sell more than five times as many units as planned, according to two people familiar with the offering.

    Goal sold 22.5 million units—consisting of one share and one warrant to buy an additional share—last week in its IPO, raising $225 million before underwriter fees, but it could have upsized and sold more than $1 billion of units based on demand from IPO investors

  • The SPAC is the latest sports-focused offering to hit the market. It’s led by well-known sports executive Harvey Schiller, who has run organizations including the YES Network, the Southeastern Conference and the U.S. Olympic Committee, and super-agent David Falk, best known for representing Michael Jordan and securing the first two $100 million player contracts in NBA history, for Alonzo Mourning and Juwan Howard.

  • Goal is seeking to acquire a business “in the professional sports teams and media sectors, including, but not limited to, related areas such as sports technology, gaming and e-sports,” it stated in its final prospectus. “We intend to target leading professional sports teams, media and brand-name companies and assets, with a particular focus on special situation assets which have significant potential for growth.” The SPAC has a large team of executives involved, including sports marketing consultant William Duffy, longtime PGA executive Donna Orender and former New York Giants lineman Bart Oates, among others.

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There’s No I In Trade

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Disclaimer: This is not financial advice and should not be interpreted as such. I am not a financial advisor. I may currently own or have owned many of the securities mentioned above – but that does not mean I am invested now. My investing method is highly risky swing trading which means I am constantly in and out of positions. Please do your own research or hit up the #SPACsquad on Twitter to learn more about SPACs.

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