What happened
Today was supposed to be a milestone day for owners of Churchill Capital IV (CCIV +0.00%) stock. The special purpose acquisition company (SPAC) scheduled a shareholder meeting to close the highly anticipated merger with electric vehicle maker Lucid Motors. The stock has been up as much as 3.2% and swung down by 4.8% on the day as the meeting was adjourned with one item left unresolved. As of 3:15 p.m. EDT, shares remained down by about 3%.
So what
Six of the seven proposals related to the business combination with Lucid Motors were overwhelmingly approved, according to the company. But the meeting will reconvene at 9 a.m. EDT tomorrow to give stockholders more time "given the higher required threshold for the proposal to adopt the post-closing company's certificate of incorporation," the company said in a statement.
Lucie Motors New York City showroom. Image source: Lucid Motors.
Now what
Churchill Capital said 97% of the votes cast were in favor of the proposed business combination. Approval of the final remaining proposal requires a majority of its outstanding shares, the company said. Approval of Proposal No. 2, also known as the "charter proposal," is a required condition for the transaction to close. Churchill Capital said it believes the lack of submitted votes stems from "the large number of new investors and new online trading platforms."
The company added that shares that are not voted will be counted as "for" the proposal. It seems that, given that fact, once the meeting resumes, it is still likely that the business combination should be finalized tomorrow.
