Veteran dealmaker Michael Klein and his partners have made a paper gain of nearly $3.3 billion on their $43 million personal investment in the blank-check acquisition firm they are merging with luxury electric vehicle startup Lucid Motors Inc, according to Reuters calculations.

Many mom-and-pop investors bought Churchill Capital IV shares hoping for a quick gain, pushing Lucid’s implied valuation from $11.75 billion at its nominal deal price to $56.3 billion at Tuesday’s closing price.

Klein and his partners received 42.85 million warrants in the SPAC which are exercisable at $1 apiece, according to regulatory filings. They were also given 51.75 million so-called founders’ shares in the SPAC.

Churchill Capital IV’s stock closed at $35, valuing the founders’ shares at $1.8 billion. The shares available for purchase through the warrants would also be worth around $1.5 billion.

Read more at: Reuters

By Joshua Franklin, Richard Chang and David Gregorio

Image Source