The company’s shares fell 16.5 percent to $2.74, the lowest level since July 2, after announcing the decision to sell additional shares as well as warning of recording larger losses than expected in the third quarter of this year.
And you expect Lucid Recording losses ranging from $765 million to $790 million in the quarter ending September 30, compared to an expected loss of $751.7 million, according to data from the London Stock Exchange Group.
In addition to the public offering of more than 262 million shares, Lucid signed an agreement with May Third Investment, a subsidiary of the Fund Saudi Public Investments And its largest shareholder, to sell approximately 375 million shares in a private placement.
Lucid said May Third expects to retain its ownership of about 59 percent of the company’s shares.
The subsidiary of the Saudi Public Investment Fund, the kingdom’s sovereign wealth fund, announced in August its commitment to inject an additional $1.5 billion, which Lucid initially expected would provide enough liquidity until the fourth quarter of next year.
The company intends to use the proceeds from the public and private offerings for general purposes and to make capital expenditures and working capital.
