CCIV Stock: Regulators Torpedo the SPAC Spectacle

CCIV Stock: Regulators Torpedo the SPAC Spectacle

Oops!Something went wrong.Please try again later.Dana BlankenhornApril 23, 2021, 10:12 AM·4 min readOops!Something went wrong.Please try again later.Churchill Capital IV (NYSE:CCIV) has drawn a lot of interest from investors since announcing it would take Lucid Motors public. This has made CCIV stock a proxy for Lucid.A photo of the Lucid Motors Air EV from 2018.Source: ggTravelDiary / Shutterstock.comLucid plans to take on Tesla (NASDAQ:TSLA) with scaled production of high-end electric cars in, among other places, Saudi Arabia.All that is on hold thanks to the Securities and Exchange Commission, which may force the warrants in this deal to be called liabilities instead of equity.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCCIV shares peaked in mid-February at $58 but now are about $20. Even at that price they're worth twice what there were when first issued in January.What's the Problem?The trouble began April 8, when the SEC's acting director of corporate finance, John Coates, questioned the use of projections in de-SPAC transactions. That's what's pending between Churchill and Lucid. The law's safe harbor provisions, which let SPAC sponsors make predictions about future growth, “does not protect against false or misleading statements made with actual knowledge,” he wrote.7 Retail Stocks With