![]() Should Venrock-led consortium sell its stake to Churchill Capital, the SPAC would directly need to acquire a smaller stake in Lucid Motors while allowing for a higher overall valuation, thereby brightening the prospects for the merger. Before explaining further, readers should note that a SPAC only acquires a fraction of its target company – usually around 10 percent. ![]() We were able to glean that, in light of the ferocious rally in Churchill Capital shares, valuation remained a key concern between the two negotiating parties and the Saudi PIF, which retains a controlling stake in Lucid Motors. However, more importantly, this development cuts to the very heart of the purported valuation concerns that have been stalling these talks. First, this indicates that negotiations continue to plough ahead, thereby brightening the prospects for an eventual agreement. No cash balance or cash flow is included in the calculation.Now, this development has two major implications for the ongoing merger talks between Lucid Motors and Churchill Capital. Please note all regulatory considerations regarding the presentation of fees must be taken into account. ![]() Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. Actual performance may differ significantly from backtested performance. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Backtested performance is developed with the benefit of hindsight and has inherent limitations. This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. ![]() General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. Disclaimer: The TipRanks Smart Score performance is based on backtested results.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |