Shares of special purpose acquisition company Churchill Capital Corp IV CCIV closed more than 2% lower on Thursday, after falling as much as 4.8% in intraday trading.
What Happened: CCIV traded about 0.5% higher in the early pre-market trading Friday amid high interest from retail traders on social media.
Churchill Capital said that a special meeting of shareholders to close its highly anticipated merger with California-based luxury electric vehicle maker Lucid Motors was adjourned to Friday, July 23.
Churchill Capital added it adjourned the meeting to allow for more time for its stockholders to vote on the last required proposal for the merger. The stockholders approved all but one of the proposals on Thursday, according to the company.
See Also: Churchill Capital Looks Like It's Getting Squeezed In A Pennant Pattern
Why It Matters: CCIV said it "encourages ALL stockholders, including individual holders, to vote, regardless of the number of shares held. Shares that are not voted will not be counted as FOR the proposal."
CCIV's appeal to investors is being seen as a sign that the SPAC is struggling to win shareholder approval for the deal.
Meanwhile, Lucid cited a report that noted the reason for the lack of votes could be the shareholders not getting the email in the first place, likely due to spam filters.
The appeal of Churchill Capital has been a favorite of retail investors after the stock surged to almost $65 per share in February while investors anticipated the SPAC merger announcement with Lucid Motors.
About 22.7% of Churchill Capital’s float is short, as per the latest available data from Yahoo! Finance.
Some of the EV startups that have taken the SPAC route to go public have found themselves muddled in controversies. Canoo Inc. GOEV, Nikola Corp. NKLA and Lordstown Motors Corp. RIDE have all come under intense investor scrutiny following SEC investigations, production delays, or short-seller reports.
However, Churchill’s SPAC partner Lucid Motors said earlier this month it is on track to begin production and deliveries in the second half of this year.
Read Next: Lucid Sees Tesla As The Real Competition In 'Two-Horse Race' EV Market: CEO
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Photo: Courtesy of Lucid Motors
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