Who the Heck Is PlusAI?

Regular readers are likely familiar with the fact that I have been accumulating shares of Churchill Capital Corp X (CCCX), which is the SPAC that has agreed to merge with advanced (my opinion) quantum computing company Infleqtion. 

None of my readers know that I have also been accumulating another SPAC from the same family of "blank check" companies because I had not written about it and there really is not that much to say about the companies involved.

Then, when I asked readers for "Stocks Under $10" or small-cap names that they wanted me to take a look at, one request came in for this name that I already had in inventory. That said, with a reader request in hand and a smallish position in the Sarge-folio, I figured that I should mention the stock to the readership. The SPAC I am speaking of is Churchill Capital Corp IX (CCIX).

The Target

Back in June, privately held PlusAI announced that the firm had plans to go public via a merger with Churchill Capital Corp IX. PlusAI is an AI-based driver software provider for factory-built autonomous trucks. The firm is headquartered in Silicon Valley and was named by the publication "Fast Company" as one of the world's most innovative companies.

The company is working in collaboration with a number of companies to create what could ultimately result in autonomous fleets of trucks that would unfortunately result in a loss of jobs for human drivers but greatly reduce overhead costs for trucking companies and potentially, with that, transcontinental shipping costs. These partners include Hyundai Motor Company, Iveco Group (IVCGF), Bosch, International Brands and others. PlusAI has operations in both the U.S. and Europe.

The company's Level 4 autonomous driving system, known as "SuperDrive" is an AI-native solution developed to be safe and scalable. The SuperDrive virtual driver has been trained on more than 6 million miles of real-world operation in addition to simulations and closed-course testing. A commercial launch of the product is scheduled at this time for the year 2027. Trials are currently being done along actual freight corridors in the state of Texas.

Info and Timing

The merger is expected to be executed at some point during the current quarter. The boards of both the SPAC and the target have approved the deal. Shareholders still have to approve the deal. Investors need to know that PlusAI tried to go public via SPAC in 2021 and that deal ultimately fell through. The new name of the merged entity will be PlusAI and will list at the Nasdaq. I would think, but I have no confirmation, that the stock symbol will change at that time.

Both companies have filed S-4 registration forms with the SEC. The transaction assumes that up to $300 million in cash will remain in the SPAC's trust account, while providing $300 million in gross proceeds to fund PlusAI through the planned commercial launch in 2027. Initial investors will be subject to lock up agreements for between 180 days and 360 days following the closing of said deal.

There's no need to chart the stock just yet as there is a basic floor of $10 for now and the stock has hovered above that level since last November, peaking at $11.66 in May, just ahead of the announcement. For those about to ask, Infleqtion is not likely to go public until very late 2025 or early 2026, but that's a story for a different article.

At the time of publication, Guilfoyle was long CCIX and CCCX equity.