Shares of electric vehicle manufacturer Lucid Group Inc ( LCID ) are trading higher after the company entered into an agreement with its majority stockholder, Ayar Third Investment Company.

Ayar, an affiliate of the Public Investment Fund (PIF), will purchase $1 billion of newly created series of convertible preferred stock via private placement.

Lucid intends to use the net proceeds from the private placement for general corporate purposes, including capital expenditures and working capital.

“We are extremely pleased to receive this strong, continued support from the PIF, as we work to solidify our place as the world’s leading EV technology company,” said CEO and CTO Peter Rawlinson.

“With their support, we remain focused upon accelerating our growth via deliveries, executing key business initiatives with relentless focus upon cost, and launching our game-changing Gravity SUV later this year.”

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Price Action: LCID shares are trading higher by 10.1% at $3.05 on the last check Monday.