Saudi Arabia's Ayar makes $1 billion investment in Lucid Group (LCID)
In a significant move, the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, has invested in Lucid Group, Inc., a leading EV technology company. The investment, made through the Ayar Third Investment Company, is part of PIF's global investment portfolio and supports the Kingdom's Vision 2030.
Lucid Group has announced a private placement of $1.0 billion in convertible preferred stock. The funds raised will be used for general corporate purposes, which may include capital expenditures and working capital. The agreement is with Ayar Third Investment Company, an affiliate of the Public Investment Fund, chaired by Crown Prince Mohammed bin Salman.
The transaction is subject to customary closing conditions. For this particular private placement, the convertible preferred stock is being sold under the exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933. A new series of convertible preferred stock has been created for this transaction.
Peter Rawlinson, CEO and CTO of Lucid Group, expressed his delight at receiving continued support from the PIF. He stated that this investment is a testament to the company's commitment to long-term investment in both its technology and vertically integrated manufacturing capabilities.
The investment from the PIF is seen as a key differentiator for Lucid Group. The company is working tirelessly to solidify its place as a leading EV technology company and the support from a prominent global investor like the PIF is a significant boost.
In addition to this investment, Lucid Group is set to launch the Gravity SUV, a game-changing vehicle, later this year. The Gravity SUV is expected to further strengthen Lucid Group's position in the EV market.
This investment by the PIF underscores the growing interest in the EV sector and the potential it holds. It also marks a significant step forward in the collaboration between Saudi Arabia and Lucid Group, as both parties work towards a common goal of a sustainable future.
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