UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended ~~September~~March 3031, ~~2018~~2019

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-38645

CHURCHILL CAPITAL CORP

(Exact Name of Registrant as Specified in Its Charter)

Delaware

37-1902569

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

640 Fifth Avenue, 12^th Floor

New York, NY 10019

(Address of principal executive offices)

(212) 380-7500

(Issuer’s telephone number)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	¨
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨

AsSecurities ofregistered ~~November~~pursuant ~~13,~~to ~~2018, 69,000,000 shares~~Section of12(b) ~~Class A common stock, par value $0.0001 per share, and 17,250,000 shares~~ of ~~Class~~the ~~B common stock, par value $0.0001 per share, were issued and outstanding.~~Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units, each consisting of one share of Class A common stock, $0.0001 par value, and one half of one warrant	CCC.U	New York Stock Exchange
Shares of Class A common stock	CCC	New York Stock Exchange
Warrants included as part of the units	CCC WS	New York Stock Exchange

As of May 9, 2019, 69,000,000 shares of Class A common stock, par value $0.0001 per share, and 17,250,000 shares of Class B common stock, par value $0.0001 per share, were issued and outstanding.

CHURCHILL CAPITAL CORP

FORM 10-Q FOR THE QUARTER ENDED ~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

TABLE OF CONTENTS

		Page
Part I. Financial Information
Item 1. Financial Statements
Condensed Balance Sheet		1
Condensed Balance Sheets		1
Condensed Statements of Operations		2
Condensed Statement of Operations		2
Condensed Statement of Cash Flows		3
Condensed Statement Changes in Stockholders’ Equity		3
Notes to Unaudited Condensed Financial Statements		4
Condensed Statement of Cash Flows		4
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Notes to Unaudited Condensed Financial Statements		5
Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk		15
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 4. Controls and Procedures		16
Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk		19
Item 4. Controls and Procedures		20
Part II. Other Information
Item 1. Legal Proceedings		1620
Item 1A. Risk Factors		1620
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		1620
Item 3. Defaults Upon Senior Securities		1720
Item 4. Mine Safety Disclosures		1720
Item 5. Other Information		1720
Item 6. Exhibits		1821
Part III. Signatures		1922

PART I - FINANCIAL INFORMATION

CHURCHILL CAPITAL CORP

CONDENSED BALANCE ~~SHEET~~SHEETS

SEPTEMBER 30, 2018

	March 31,			December 31,
	2019			2018
	(unaudited)
ASSETS
Current Assets
Cash	$	2,917,650		$	3,528,190
Prepaid expenses and other current assets		345,829			334,654
Total Current Assets		3,263,479			3,862,844

Marketable securities held in Trust Account		698,421,442			694,574,904
Total Assets	$	701,684,921		$	698,437,748

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	5,749,938		$	1,936,353
Deferred tax liability		—			13,098
Income taxes payable		1,543,703			794,936
Total Current Liabilities		7,293,641			2,744,387

Deferred underwriting fee payable		24,150,000			24,150,000
Total Liabilities		31,443,641			26,894,387

Commitments and Contingencies

Common stock subject to possible redemption, 65,872,303 and 66,301,394 shares at redemption value as of March 31, 2019 and December 31, 2018, respectively		665,241,275			666,543,359

Stockholders’ Equity
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding		—			—
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 3,127,697 and 2,698,606 issued and outstanding (excluding 65,872,303 and 66,301,394 shares subject to possible redemption) as of March 31, 2019 and December 31, 2018, respectively		313			270
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 17,250,000 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively		1,725			1,725
Additional paid-in capital		5,058,542			3,756,501
(Accumulated deficit)/Retained earnings		(60,575	)		1,241,506
Total Stockholders’ Equity		5,000,005			5,000,002
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	701,684,921		$	698,437,748

~~(Unaudited)~~The accompanying notes are an integral part of these unaudited condensed financial statements.

ASSETS
Current Assets
Cash	$	3,929,013
Prepaid expenses		369,233
Total Current Assets		4,298,246
Marketable securities held in Trust Account		690,689,925
Total Assets	$	694,988,171
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities – Income taxes payable	$	112,626
Total Current Liabilities		112,626
Deferred underwriting fee payable		24,150,000
Total Liabilities		24,262,626
Commitments and Contingencies
Common stock subject to possible redemption, 66,516,902 shares at redemption value		665,725,544
Stockholders’ Equity
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding		—
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 2,483,098 issued and outstanding (excluding 66,516,902 shares subject to possible redemption)		248
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 17,250,000 shares issued and outstanding		1,725
Additional paid-in capital		4,574,338
Retained earnings		423,690
Total Stockholders’ Equity		5,000,001
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	694,988,171

The accompanying notes are an integral part of these condensed financial statements.

CHURCHILL CAPITAL CORP

CONDENSED ~~STATEMENTS~~ STATEMENT OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2019

(UNAUDITED)

	Three Months Ended September 30,			For the Period from June 20, 2018 (inception) thru September 30,
Operating costs	$	4,412,950
	2018			2018
Loss from operations		(4,412,950	)
Operating costs	$	152,582		$	153,609
Other income:
Loss from operations		(152,582	)		(153,609	)
Interest income		3,846,538
Other income:
Other income, net		3,846,538
Interest income		738,355			738,355
Loss before provision for income taxes		(566,412	)
Unrealized loss on marketable securities held in Trust Account		(48,430	)		(48,430	)
Provision for income taxes		(735,669	)
Other income, net		689,925			689,925
Net loss	$	(1,302,081	)
Income before provision for income taxes		537,343			536,316
Weighted average shares outstanding, basic and diluted (1)		19,948,606
Provision for income taxes		(112,626	)		(112,626	)
Basic and diluted net loss per common share (2)	$	(0.21	)
Net income	$	424,717		$	423,690
Weighted average shares outstanding, basic and diluted (1)		15,985,477			15,879,200
Basic and diluted net loss per common share (2)	$	(0.01	)	$	(0.01	)

(1) September 30, 2018 excludes an aggregate of up to 66,516,902 shares subject to redemption.

	(1)	Excludes an aggregate of up to 65,872,303 shares subject to possible redemption
	(2)	Net loss per common share – basic and diluted excludes income attributable to shares subject to possible redemption of $2,918,654.

~~(2)~~The ~~Net~~accompanying ~~loss~~notes ~~per~~are ~~common~~an ~~share~~integral ~~– basic and diluted excludes income attributable to common subject to possible redemption~~ part of ~~$556,516~~these ~~for~~unaudited ~~the~~condensed ~~three~~financial ~~months ended September 30, 2018 and for the period from June 20, 2018 (inception) through September 30, 2018~~statements.

The accompanying notes are an integral part of these condensed financial statements.

CHURCHILL CAPITAL CORP

~~CONDENSED~~ STATEMENT OF ~~CASH~~CHANGES ~~FLOWS~~IN STOCKHOLDERS’ EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2019

FOR THE PERIOD FROM JUNE 20, 2018 (INCEPTION) THRU SEPTEMBER 30, 2018

(UNAUDITED)

Cash Flows from Operating Activities:
	Class A Common Stock					Class B Common Stock				Additional Paid		Retained Earnings/ (Accumulated			Total Stockholders’
Net income	$	423,690
	Shares			Amount		Shares		Amount		in Capital		Deficit)			Equity
Adjustments to reconcile net income to net cash used in operating activities:
Balance – January 1, 2019		2,698,606		$	270		17,250,000	$	1,725	$	3,756,501	$	1,241,506		$	5,000,002
Interest earned on marketable securities held in Trust Account		(738,355	)
Common stock subject to possible redemption		429,091			43		—		—		1,302,041		—			1,302,084
Unrealized loss on marketable securities held in Trust Account		48,430
Net loss		—			—		—		—		—		(1,302,081	)		(1,302,081	)
Changes in operating assets and liabilities:
Balance – March 31, 2019 (unaudited)		3,127,697		$	313		17,250,000	$	1,725	$	5,058,542	$	(60,575	)	$	5,000,005
Prepaid expenses		(369,233	)
Income taxes payable		112,626
Net cash used in operating activities		(522,842	)
Cash Flows from Investing Activities:
Investment of cash in Trust Account		(690,000,000	)
Net cash used in investing activities		(690,000,000	)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock to Sponsor		25,000
Proceeds from sale of Units, net of underwriting discounts paid		676,200,000
Proceeds from sale of Private Placement Warrants		18,300,000
Reimbursement of offering expenses from underwriter		588,000
Proceeds from promissory note – related party		275,000
Repayment of promissory note – related party		(275,000	)
Payment of offering costs		(661,145	)
Net cash provided by financing activities		694,451,855
Net Change in Cash		3,929,013
Cash – Beginning		—
Cash – Ending	$	3,929,013
Non-cash investing and financing activities:
Initial classification of common stock subject to redemption	$	665,300,820
Change in value of common stock subject to redemption	$	424,724
Deferred underwriting fee payable	$	24,150,000

The accompanying notes are an integral part of these unaudited condensed financial statements.

CHURCHILL CAPITAL CORP

CONDENSED STATEMENT OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2019

(UNAUDITED)

Cash Flows from Operating Activities:
Net loss	$	(1,302,081	)
Adjustments to reconcile net loss to net cash used in operating activities:
Interest earned on marketable securities held in Trust Account		(3,846,538	)
Deferred tax provision		(13,098	)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		(11,175	)
Accounts payable and accrued expenses		3,813,585
Income taxes payable		748,767
Net cash used in operating activities		(610,540	)

Net Change in Cash		(610,540	)
Cash – Beginning		3,528,190
Cash – Ending	$	2,917,650

Non-cash investing and financing activities:
Change in value of common stock subject to possible redemption	$	1,302,084

The accompanying notes are an integral part of these unaudited condensed financial statements.

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

Churchill Capital Corp (the “Company”) was incorporated in Delaware on June 20, 2018. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”).

Although the Company is not limited to a particular industry or sector for purposes of consummating a Business Combination, the Company ~~intends~~is tofocusing ~~focus~~ on businesses in the broader technology services and software industry and, more specifically, the predictive analytics and data market. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

As of ~~September~~March 3031, ~~2018~~2019, the Company had not commenced any operations. All activity for the period from June 20, 2018 (inception) through ~~September 30~~March 31, ~~2018~~2019 relates to the Company’s formation, its initial public offering (“Initial Public Offering”), which is described below, ~~and~~its ~~identifying~~search ~~a target company~~ for a Business Combination and activities in connection with the merger transaction with Camelot Holdings (Jersey) Limited (“Clarivate”) (see Note 9). The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company ~~will~~generates ~~generate~~ non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering.

The registration statement for the Initial Public Offering was declared effective on September 6, 2018. On September 11, 2018, the Company consummated the ~~Initial~~ Initial Public Offering of 69,000,000 units (“Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which includes a full exercise by the underwriters of their over-allotment option in the amount of 9,000,000 Units, at $10.00 per Unit, generating gross proceeds of $690,000,000, which is described in Note 3 4.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 18,300,000 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to Churchill Sponsor LLC, a Delaware limited liability company (the “Sponsor”), generating gross ~~proceeds~~ proceeds of $18,300,000, which is described in Note 45.

Following the closing of the Initial Public Offering on September 11, 2018, an amount of $690,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (“Trust Account”) which may be invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 180 days or less, or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the Trust Account, as described below, except that interest earned on the Trust Account can be released to the Company to pay its tax obligations.

Transaction costs relating to the Initial Public Offering amounted to $38,023,145, consisting of $13,800,000 of underwriting fees, $24,150,000 of deferred underwriting fees and $73,145 of other costs, which is net of a $588,000 reimbursement received from the underwriters (see Note 6 7). In addition, as of ~~September~~March 3031, ~~2018~~2019, $32,~~929~~917,~~013~~650 of cash was held outside of the Trust Account and is available for working capital purposes.

The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the remaining net proceeds are intended to be applied generally toward consummating a Business Combination. The Company must complete an initial Business Combination with one or more operating businesses or assets having an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on interest earned on the Trust Account) at the time of the agreement to enter into the initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to complete a Business Combination successfully.

The Company will provide its holders of the outstanding Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account ($10.00 per Public Share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The per-share amount to be distributed to public stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 67). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 ~~upon~~remaining ~~such~~after ~~consummation~~completion of ~~a Business~~the ~~Combination~~redemption offer and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law or stock exchange requirements and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transactions is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Each public stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction. If the Company seeks stockholder approval in connection with a Business Combination, the Company’s Sponsor and its permitted transferees ~~will~~have ~~agree~~agreed to vote their Founder Shares (as defined in Note 56) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. ~~Additionally, each public stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction.~~

If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company.

The Sponsor and its permitted transferees have agreed (a) to waive their redemption rights with respect to their Founder Shares and Public Shares held by them in connection with the completion of a Business Combination, (b) to waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to consummate a Business Combination within the Combination Window (as defined below) and (c) not to propose an amendment to the Company’s Amended and Restated Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with the opportunity to redeem their shares in conjunction with any such amendment.

The Company has until September 11, 2020 to consummate a Business Combination (the “Combination Window”). If the Company is unable to complete a Business Combination within the Combination Window, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Window.

The Sponsor and its permitted transferees have agreed to waive their liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination ~~within~~ within the Combination Window. However, if the Sponsor and ~~their~~its permitted transferees acquire Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Window. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 6 7) held in the Trust Account in the event the Company does not complete a Business Combination within in the Combination Window and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than $10.00 per Unit.

In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (i) $10.00 per Public Share or (ii) such lesser amount per Public Share held in the Trust Account as of the liquidation of the Trust Account due to reductions in the value of the trust assets, in each case net of the interest which may be withdrawn to pay taxes. This liability will not apply with respect to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account or to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

NOTE 2. ~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES~~LIQUIDITY

The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the Initial Public Offering and such amount of proceeds from the sale of the Private Placement Warrants and the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. As of March 31, 2019, the Company had $2,917,650 in its operating bank accounts, $698,421,442 in securities held in the Trust Account to be used for a Business Combination or to repurchase or redeem its common stock in connection therewith and working capital deficit of approximately $2,436,000, which excludes approximately $1,594,000 of franchise and income taxes payable that may be paid from interest earned on the Trust Account. In addition, two of the Company’s service providers have agreed to defer the payment of fees owed to them until the consummation of a Business Combination, which amounted to approximately $3,014,000 as of March 31, 2019. Such fees are included in the accounts payable and accrued expenses in the accompanying condensed balance sheet at March 31, 2019. Based on the foregoing, the Company believes it will have sufficient cash to meet its needs for the next twelve months following the date from when the financial statements are issued.

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed ~~financial~~consolidated financial statements should be read in conjunction with the Company’s ~~prospectus~~Annual Report on Form 10-K for the year ended December 31, 2018 as filed with the SEC on ~~September~~February 1027, ~~2018~~2019, aswhich ~~well~~contains the audited financial statements and notes thereto, together with Management’s Discussion and Analysis. The financial information as of December 31, 2018 is derived from the audited financial statements presented in the Company’s ~~Current~~Annual Report on Form 810-K, asfor ~~filed with~~ the ~~SEC~~year onDecember ~~September 12~~31, 2018. The interim results for the ~~period from~~three ~~June~~months ~~20,~~ended ~~2018~~March ~~(inception) through September 30~~31, ~~2018~~2019 are not necessarily indicative of the results to be expected for the ~~period~~ ~~from~~year ~~June~~ending ~~20, 2018 (inception) through~~ December 31, ~~2018~~2019 or for any future interim periods.

Emerging growth company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

~~Use of estimates~~7

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

Use of estimates

Cash and cash equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash ~~equivalents~~ equivalents as of ~~September~~March 3031, 2019 and December 31, 2018.

Marketable securities held in Trust Account

At ~~September~~March 3031, ~~2018~~2019, substantially all of the assets held in the Trust Account were held in money market funds. At December 31, 2018, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills.

Common stock subject to possible redemption

The Company accounts for its common stock ~~subject~~ subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at ~~September~~March 3031, 2019 and December 31, 2018, common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s condensed balance ~~sheet~~sheets.

Income taxes

The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of ~~September~~March 3031, 2019 and December 31, 2018. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material ~~deviation~~ deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

~~Net~~The ~~loss~~Company's ~~per~~effective ~~common~~tax ~~share~~rate of (129.9%) differs from its statutory tax rate of 21.0% primarily due to the Company's Business Combination expenses, which are capitalized and therefore not deductible in the current year for tax purposes.

Net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. The Company applies the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption at September 30, 2018, which are not currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered the effect of warrants sold in the Initial Public Offering and private placement to purchase 52,800,000 shares of common stock. As a result, diluted loss per common share is the same as basic loss per common share for the periods.8

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

Net loss per common share

Net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. The Company applies the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption at March 31, 2019, which are not currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered the effect of warrants sold in the Initial Public Offering and private placement to purchase 52,800,000 shares of common stock, since the exercise of the warrants are contingent upon the occurrence of future events. As a result, diluted loss per common share is the same as basic loss per common share for the periods presented.

Reconciliation of net loss per common share

The Company’s net income is adjusted for the portion of income that is attributable to common stock subject to possible redemption, as these shares only participate in the income of the Trust Account and not the losses of the Company. Accordingly, basic and diluted loss per common share is calculated as follows:

	Three Months Ended September 30,			For the Period from June 20, 2018 (inception) through September 30,
	Three Months Ended March 31,
	2018			2018
	2019
Net income	$	424,717		$	423,690
Net loss	$	(1,302,081	)
Less: Income attributable to shares subject to redemption		(~~556~~2,~~516~~918,654	)		~~(556,516~~	)
Adjusted net loss	$	(~~131~~4,~~799~~220,735	)	$	~~(132,826~~	)
Weighted average shares outstanding, basic and diluted		1519,~~985~~948,~~477~~606			~~15,879,200~~
Basic and diluted net loss per share	$	(0.0121	)	$	~~(0.01~~	)

Concentration of credit risk

Financial instruments that potentially ~~subject~~ subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times may exceed ~~the~~ the Federal Depository Insurance Coverage of $250,000. At ~~September~~March 3031, 2019 and December 31, 2018, the Company had not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying condensed balance ~~sheet~~sheets, primarily due to their short-term nature.

Recent accounting pronouncements

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s condensed financial statements.

NOTE 34. PUBLIC OFFERING

Pursuant to the Initial Public Offering, ~~the~~ the Company sold 69,000,000 Units at a purchase price of $10.00 per Unit, which includes the full exercise by the underwriters of their over-allotment option in the amount of 9,000,000 Units at $10.00 per Unit. Each Unit consists of one share of Class A common stock and one half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 78).

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

NOTE 45. PRIVATE PLACEMENT

Simultaneously with the Initial Public Offering, the Sponsor purchased an aggregate of 18,300,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, for an aggregate purchase price of $18,300,000. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share. The proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Window, the proceeds from the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. There will be no redemption rights or liquidating distributions from the Trust Account with respect to the Private Placement Warrants.

NOTE 56. RELATED PARTY TRANSACTIONS

Founder Shares

In July 2018, the Sponsor purchased 11,500,000 shares (the “Founder Shares”) of the Company’s Class B common stock for an aggregate price of $25,000. On August 31, 2018 and September 6, 2018, the Company effected stock dividends of 0.125 of a share of Class B common stock and one third of a share of Class B common stock, respectively, for each outstanding share of Class B common stock, ~~resulting~~ resulting in 17,250,000 Founder Shares outstanding. The Founder Shares will automatically convert into shares of Class A common stock upon consummation of a Business Combination on a one-for-one basis, subject to certain adjustments, as described in Note 78.

The Founder Shares included an aggregate of up to 2,250,000 shares subject to forfeiture to the extent that the underwriters’ over-allotment option was not exercised in full or in part, so that the Sponsor would own, on an as-converted basis, 20% of the Company’s issued and outstanding shares after the Initial Public Offering (assuming the Sponsor did not purchase any Public Shares in the Initial Public Offering). As a result of the underwriters’ election to fully exercise their over-allotment option, 2,250,000 Founder Shares are no longer subject to forfeiture.

The Sponsor and its permitted transferees have agreed, subject to limited exceptions, not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination or (B) subsequent to a Business Combination, (x) if the last sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property.

Promissory Note – Related Party

On July 6, 2018, the Company issued an unsecured promissory note (the “Promissory Note”) to the Sponsor, pursuant to which the Company borrowed an aggregate principal amount of $275,000. The Promissory Note was non-interest bearing and payable on the earlier of March 31, 2019 or the completion of the Initial Public Offering. The Promissory Note was repaid upon the consummation of the Initial Public Offering on September 11, 2018.

Administrative Support Agreement

The Company entered into an agreement commencing on September 6, 2018 through the earlier of the Company’s consummation of a Business Combination and its liquidation, to to pay an affiliate of the Sponsor a total of $31,250 per month for office space, administrative and support services. For the three months ended ~~September~~March 3031, ~~2018 and for the period from June 20~~2019, ~~2018 (inception) through September 30, 2018,~~ the Company incurred $2593,~~000~~750 in fees for these services.

Related Party Loans

In order to finance transaction costs in connection with a Business Combination, the Sponsor, an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants.

910

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

~~NOTE~~Advisory ~~6. COMMITMENTS AND CONTINGENCIES~~Fee

The Company has ~~entered~~engaged ~~into~~The aKlein ~~fee arrangement~~Group, ~~with~~LLC, aan ~~service~~affiliate ~~provider~~of ~~pursuant~~Michael toKlein ~~which~~and ~~certain~~the ~~fees~~Sponsor ~~incurred~~and byan ~~the~~affiliate ~~Company~~and ~~will~~wholly beowned ~~deferred~~subsidiary ~~and~~of ~~become~~M. ~~payable~~Klein ~~only~~and ifCompany (the “Klein Group”), to act as the Company’s ~~consummates~~financial aadvisor ~~Business~~in ~~Combination.~~connection Ifwith athe ~~Business~~Mergers ~~Combination~~(as ~~does~~defined ~~not~~and ~~occur~~discussed in Note 9). Pursuant to this engagement, the Company will ~~not~~pay bethe ~~required~~Klein toGroup ~~pay~~an ~~these~~advisory fee of $12.5 million, which shall be earned ~~contingent~~upon ~~fees~~the closing of the Mergers ($7.5 million Asof such fee to be payable upon the closing of ~~September~~the 30Mergers, ~~2018~~$2.5 million of such fee to be payable on January 31, 2020 and the ~~amount~~final $2.5 million of ~~these~~such ~~contingent~~fee ~~fees~~to ~~was~~be ~~approximately~~payable ~~$300~~on January 29,~~000~~ 2021). ToThe ~~the~~payment ~~extent~~of asuch ~~Business Combination~~fee is ~~consummated,~~conditioned upon the completion of the Mergers. The Company ~~anticipates~~will ~~incurring~~also provide a ~~significant~~customary ~~amount~~indemnity to ofthe ~~additional~~Klein ~~costs~~Group in connection with this engagement. ~~There~~The ~~can~~engagement beof nothe ~~assurances~~Klein Group and the payment of the advisory fee has ~~that~~been approved by the Company’s ~~will~~audit ~~complete~~committee aand ~~Business~~board ~~Combination~~of directors in accordance with the Company’s related persons transaction policy. The Company and the other parties to the letter agreement entered into at the time of the Initial Public Offering (the “Letter Agreement”) amended the Letter Agreement to permit the engagement of the Klein Group described above.

NOTE 7. COMMITMENTS AND CONTINGENCIES

Contingent Fee Arrangement

The Company has entered into a fee arrangement with a service provider pursuant to which certain fees incurred by the Company will be deferred and become payable only if the Company consummates a Business Combination. If a Business Combination does not occur, the Company will not be required to pay these contingent fees. As of March 31, 2019, the amount of these contingent fees was approximately $300,000. To the extent a Business Combination is consummated, the Company anticipates incurring a significant amount of additional costs. There can be no assurances that the Company will complete a Business Combination.

Registration Rights

Pursuant to a registration rights agreement entered into on September 6, 2018, the holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants or warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriters are entitled to a deferred fee of $0.35 per Unit, or $24,150,000 in the aggregate. The deferred fee will be waived by the underwriters in the event that the Company does not complete a Business Combination, subject to the terms of the underwriting agreement.

~~The~~Operating underwriters agreed to reimburse the Company for certain offering expenses in connection with the Initial Public Offering. The underwriters reimbursed the Company $588,000, which has been recorded as credit to additional paid in capital in the accompanying balance sheet at September 30, 2018.Lease

~~NOTE~~The 7Company leases space for corporate purposes under a lease agreement that expires in November 2019. ~~STOCKHOLDERS’~~The ~~EQUITY~~Company incurred rent expense amounting to approximately $23,000 for the three months ended March 31, 2019.

~~Preferred~~Future ~~Stock~~minimum —lease ~~The~~payments ~~Company~~due under isthe ~~authorized~~lease amount to ~~issue~~approximately 1$72,000~~,000~~ ~~shares~~for ~~of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by~~ the ~~Company’s~~year ~~board~~ended ~~of directors. At September 30~~December 31, ~~2018, there were no shares of preferred stock issued or outstanding~~2019.

~~Class A~~Reimbursement ~~Common Stock — The Company is authorized to issue 200,000,000 shares~~ of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to one vote for each share. At September 30, 2018, there were 2,483,098 shares of Class A common stock issued and outstanding (excluding 66,516,902 shares of common stock subject to possible redemption).Expenses

~~Class B~~The ~~Common~~Sponsor, ~~Stock~~and ~~— The~~the Company’s isofficers and ~~authorized~~directors toor ~~issue~~any ~~20,000,000 shares~~ of ~~Class B~~their ~~common~~respective ~~stock~~affiliates ~~with~~will abe ~~par~~reimbursed ~~value~~for any out-of-pocket ~~$0.0001~~expenses ~~per~~incurred ~~share.~~in ~~Holders~~connection with ofactivities ~~Class B~~on ~~common~~the ~~stock~~Company’s ~~are~~behalf ~~entitled~~such toas ~~one~~identifying ~~vote~~potential ~~for~~target ~~each~~businesses ~~share.~~and Atperforming ~~September~~due ~~30,~~diligence ~~2018~~on suitable Business Combinations, ~~there~~including ~~were~~up 17to $500,~~250,~~000 ~~shares~~for office space rented outside of ~~Class B common~~New ~~stock~~York ~~issued~~City and ~~outstanding~~personnel hired solely for activities on the Company’s behalf.

Holders of Class B common stock will have the right to elect all of the Company’s directors prior to a Business Combination. Holders of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote of stockholders except as required by law. 11

The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination, any private placement-equivalent warrants issued, or to be issued, to any seller in a Business Combination. Holders of Founder Shares may also elect to convert their shares of Class B common stock into an equal number of shares of Class A common stock, subject to adjustment as provided above, at any time.

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

NOTE 8. STOCKHOLDERS’ EQUITY

Preferred Stock — The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At March 31, 2019 and December 31, 2018, there were no shares of preferred stock issued or outstanding.

Class A Common Stock — The Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to one vote for each share. At March 31, 2019 and December 31, 2018, there were 3,127,697 and 2,698,606 shares of Class A common stock issued and outstanding, excluding 65,872,303 and 66,301,394 shares of common stock subject to possible redemption, respectively.

Class B Common Stock — The Company is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders of Class B common stock are entitled to one vote for each share. At March 31, 2019 and December 31, 2018, there were 17,250,000 shares of Class B common stock issued and outstanding.

Warrants — Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.

The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available.

The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, the Company will use its best efforts to file with the SEC, and within 60 business days following a Business Combination to have declared effective, a registration ~~statement~~ statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its reasonable best efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available

Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its reasonable best efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2019

(Unaudited)

Once the warrants become exercisable, the Company may redeem the Public Warrants:

• in whole and not in part; • at a price of $0.01 per warrant; • upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and • if, and only if, the last reported sale price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders.

• at a price of $0.01 per warrant;

• upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and

• if, and only if, the last reported sale price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders.

If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Window and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

11NOTE 9. CLARIVATE MERGER AGREEMENT

On January 14, 2019, the Company entered into the Merger Agreement by and among the Company; Clarivate Analytics Plc (“Holdings”), currently a subsidiary of Onex Partners IV LP and Onex Partners IV GP LP; Clarivate; CCC Merger Sub, Inc., a wholly owned subsidiary of Holdings (“Delaware Merger Sub”); and Camelot Merger Sub (Jersey) Limited, a wholly owned subsidiary of Holdings (“Jersey Merger Sub”). On February 26, 2019, the parties entered into Amendment No. 1 to the Merger Agreement to make certain technical amendments to the Merger Agreement. On March 29, 2019, the parties entered into Amendment No. 2 to the Merger Agreement to make certain technical amendments to the Merger Agreement.

Pursuant to the Merger Agreement, a business combination between the Company and Clarivate will be effected through (i) the merger of Jersey Merger Sub with and into Clarivate with Clarivate being the surviving company in the merger (the “Jersey Merger”), in connection with which affiliates of Onex Partners Managers LP (the “Onex Shareholders”), an affiliate of Baring Private Equity Asia Group Limited (the “Baring Shareholder”) and the management shareholders of Clarivate (together with the Onex Shareholders and the Baring Shareholder, the “Clarivate Owners”) will be issued an aggregate of 217,500,000 ordinary shares of Holdings (the “Ordinary Shares”) and (ii) the merger of Delaware Merger Sub with and into the Company with the Company being the surviving corporation in the merger (the “Delaware Merger” and, together with the Jersey Merger, the “Mergers” and the Mergers, together with the other transactions contemplated by the Merger Agreement, the “Transactions”). In connection with the Mergers, each stockholder of the Company will receive one Ordinary Share for each share of the Company’s common stock that such stockholder owns, and existing warrants to purchase the Company’s common stock will become warrants (“Holdings Warrants”) exercisable to purchase Ordinary Shares in accordance with the terms thereof. In addition, the number of Ordinary Shares issued to the Clarivate Owners increases by 1 Ordinary Share for every $10 of transaction-related expenses incurred by the Company in excess of an agreed amount.

Consummation of the Transactions is conditioned on the Company having at least $5,000,001 of net tangible assets remaining after completion of the redemption offer. In addition, the consummation of the Transactions is conditioned upon, among other things, (i) the waiting period under the Hart-Scott-Rodino Act having expired; (ii) no order, statute, rule or regulation enjoining or prohibiting the consummation of the Transactions being in force; (iii) the memorandum of association and articles of association of Holdings having been amended and restated; (iv) the Form F-4 registration statement of Holdings with respect to the registration of the Ordinary Shares and Holdings Warrants having become effective in accordance with the provision of the Securities Act and no stop order having been issued by the SEC which remains in effect with respect to the Form F-4, and no proceeding seeking such a stop order having been threatened or initiated by the SEC which remains pending, (v) the approval for listing by the New York Stock Exchange of the Ordinary Shares and Holdings Warrants to be issued in connection with the business combination having been obtained; (vi) the Company having at least $550,000,000 of cash after giving effect to payment of amounts that the Company will be required to pay to redeeming stockholders upon consummation of the Transactions and certain other fees and expenses described in the Merger Agreement; and (vii) the approval of the Company’s stockholders of the Transactions having been obtained.

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER~~MARCH 3031, ~~2018~~2019

(Unaudited)

~~NOTE~~The 8Company has engaged the Klein Group to act as the Company’s financial advisor in connection with the Mergers. ~~FAIR~~Pursuant ~~VALUE~~to ~~MEASUREMENTS~~this engagement, the Company will pay the Klein Group an advisory fee of $12.5 million, which shall be earned upon the closing of the Mergers ($7.5 million of such fee to be payable upon the closing of the Mergers, $2.5 million of such fee to be payable on January 31, 2020 and the final $2.5 million of such fee to be payable on January 29, 2021). The payment of such fee is conditioned upon the completion of the Mergers. The engagement of the Klein Group and the payment of the advisory fee has been approved by the Company’s audit committee and board of directors in accordance with the Company’s related persons transaction policy. The Company and the other parties to the Letter Agreement amended the Letter Agreement to permit the engagement of the Klein Group described above.

In connection with the execution of the Merger Agreement, the Sponsor, the founders and Garden State Capital Partners LLC, a Delaware limited liability company in which Michael Klein holds an equity interest and is the managing member (“Garden State”), entered into a letter agreement (the “Sponsor Agreement”) pursuant to which they have agreed to comply with the provisions of the Merger Agreement applicable to such persons as well as the covenants set forth in the Sponsor Agreement, including voting all shares of common stock of the Company beneficially owned by such persons in favor of the Transactions.

The Sponsor Agreement provides that the ordinary shares of Clarivate and Clarivate warrants to be issued to such persons in connection with the Mergers will be subject to a three-year lock-up restriction (partially reduced to two years in the event the Onex Shareholders and/or the Baring Shareholders sell any ordinary shares of Clarivate prior to such date).

The Sponsor Agreement also provides that the ordinary shares of Clarivate to be issued to the Sponsor in connection with the Mergers in respect of Founder Shares and available for distribution to Jerre Stead, Michael Klein and Sheryl von Blucher and the Clarivate warrants held by the Sponsor and available for distribution to such persons and to Garden State, in each case, will be subject to certain time and performance-based vesting provisions described below.

50% of the ordinary shares of Clarivate held by Jerre Stead, Michael Klein and Sheryl von Blucher will vest in three equal annual installments, with the first, second and third installments vesting on the first, second and third anniversaries of the closing of the Transactions, respectively. 25% of the ordinary shares of Clarivate held by such persons will vest at such time as a $15.25 Stock Price Level (as defined below) is achieved on or before the date that is 42 months after the closing of the Transactions, and 25% of the ordinary shares of Clarivate held by such persons will vest at such time as a $17.50 Stock Price Level is achieved on or before the fifth anniversary of the closing of the Transactions. The ordinary shares of Clarivate that are subject to vesting at the $15.25 Stock Price Level shall be eligible to vest with the ordinary shares subject to the $17.50 Stock Price Level if the $15.25 Stock Price Level is not achieved on or before the date that is 42 months after the closing of the Transactions. If any of the ordinary shares of Clarivate subject to such Stock Price Level vesting vest prior to the third anniversary of the closing of the Transactions, such ordinary shares of Clarivate shall also be subject to the time-based vesting described in the first sentence of this paragraph.

The Clarivate warrants held by Jerre Stead, Michael Klein, Sheryl von Blucher and Garden State will vest at such time as a $17.50 Stock Price Level is achieved on or before the fifth anniversary of the closing of the Transactions; provided that none of such Clarivate warrants will vest prior to the first anniversary of the closing of the Transactions, not more than 1/3 of such Clarivate warrants will vest prior to the second anniversary of the closing of the Transactions, and not more than 2/3 of such Clarivate warrants will vest prior to the third anniversary of the closing of the Transactions.

In addition, if a $20.00 Stock Price Level is achieved on or before the sixth anniversary of the closing of the Transactions, Clarivate shall allot and issue 7,000,000 newly-issued ordinary shares of Clarivate to the persons designated by Jerre Stead and Michael Klein (or, in the event of death or incapacity of either, by his respective successor) (the “Incentive Shares”).

In the event of certain sale transactions involving the ordinary shares of Clarivate or all or substantially all of the assets of Clarivate, the unvested ordinary shares of Clarivate subject only to time-based vesting shall automatically become vested. The unvested ordinary shares of Clarivate subject to performance-based vesting and the unvested Clarivate warrants subject to performance-based vesting will vest if the per share price implied in such sale transaction is equal to or greater than the applicable Stock Price Level. The Incentive Shares will also become issuable if the per share price implied in such sale transaction is equal to or greater than $20.00. For the sake of clarity, all unvested ordinary shares of Clarivate subject to performance-based vesting and the unvested Clarivate warrants subject to performance-based vesting will not vest if the per share price implied in such sale transaction is less than the applicable Stock Price Level.

CHURCHILL CAPITAL CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2019

(Unaudited)

Ordinary shares of Clarivate that are subject to performance-based vesting will be forfeited for no consideration to the Clarivate Owners if they do not vest in accordance with the Sponsor Agreement. Clarivate warrants that are subject to performance-based vesting may be transferred to the Clarivate Owners (with respect to the Clarivate warrants held by Jerre Stead, Michael Klein and Sheryl von Blucher) or Clarivate (with respect to the Clarivate warrants held by Garden State), in each case, for a purchase price equal to the original cost of such warrants, in certain circumstances if they do not vest in accordance with the Sponsor Agreement.

The applicable “Stock Price Level” will be considered achieved only when the last reported sale price per ordinary share of Clarivate on the NYSE equals or exceeds the applicable threshold for any 40 trading days during a 60 consecutive trading day period, which 60 consecutive trading day period will not commence until the earlier of (i) the date on which Onex or Baring sell any of their respective ordinary shares of Clarivate to a third party that is not an affiliate of Onex, Baring, any founder, Sponsor or Garden State or (ii) the first anniversary of the closing of the Transactions.

Pursuant to the Sponsor Agreement, Jerre Stead (personally or through his designee, JMJS Group-II, LP) and Michael Klein have agreed to purchase from the Company an aggregate of 1,500,000 shares of common stock of the Company immediately prior to the closing of the Transactions for an aggregate purchase price of $15,000,000.

The Sponsor Agreement provides for certain “tag-along” rights in favor of the Sponsor, if applicable, the founders and Garden State upon certain sales of ordinary shares of Clarivate by the Onex Shareholders or the Baring Shareholders following the expiration of the lock-up period described above. In addition, the Sponsor Agreement provides for certain “drag-along” rights in favor of the Onex Shareholders and the Baring Shareholders which permit the Onex Shareholders and the Baring Shareholders to require the founders, Garden State and, if applicable, the Sponsor to sell a proportionate number of ordinary shares of Clarivate held by such persons if the Onex Shareholders and the Baring Shareholders propose to transfer 50% or more of the ordinary shares of Clarivate then-held by the Onex Shareholders and the Baring Shareholders.

The Sponsor Agreement terminates on the earlier of (i) the latest of (w) the expiration of the lock-up period described above, (x) the vesting in full and delivery of all ordinary shares of Clarivate and Clarivate warrants subject to vesting as described above, (y) the issuance of the Incentive Shares or (z) if the Incentive Shares have not been issued on or prior to the sixth anniversary of the closing of the Transactions, the day after the sixth anniversary of the closing of the Transactions or (ii) prior to the closing of the Transactions, the liquidation of the Company or, if the closing of the Transactions shall have occurred, the liquidation of Clarivate.

The Clarivate Owners, the Sponsor, the founders and Garden State will be granted certain rights, pursuant to the Registration Rights Agreement which will be entered into at or prior to the closing of the Transactions. Pursuant to the Registration Rights Agreement, such persons will be entitled to have registered, in certain circumstances, the resale of the ordinary shares of Clarivate held by them, subject to certain conditions set forth therein. The parties to the Registration Rights Agreement will also be entitled to participate in certain registered offerings by Clarivate or demand registrations by the other parties to the Registration Rights Agreement, subject to certain limitations and restrictions. Clarivate will indemnify the parties for certain liabilities, including liabilities under the Securities Act, and will pay certain expenses of the parties incurred in connection with the exercise of their rights under the Registration Rights Agreement.

NOTE 10. FAIR VALUE MEASUREMENTS

The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

	Level 1:	Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

	Level 2:	Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.

	Level 3:	Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis at September 30, 2018, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:15

Description	Level	September 30, 2018
Assets:
Marketable securities held in Trust Account	1	$	690,689,925

CHURCHILL CAPITAL CORP

~~NOTE~~NOTES 9.TO ~~SUBSEQUENT~~CONDENSED ~~EVENTS~~FINANCIAL STATEMENTS

~~The~~MARCH ~~Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued. Based upon this review~~31, ~~the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements.~~2019

12(Unaudited)

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis at March 31, 2019 and December 31, 2018, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

Description	Level	March 31, 2019		December 31, 2018
Assets:
Marketable securities held in Trust Account	1	$	698,421,442	$	694,574,904

NOTE 11. SUBSEQUENT EVENTS

Subsequent to March 31, 2019 the Company and the underwriters of the Initial Public Offering agreed to amend their underwriting agreement to permit the Company to elect to reduce the deferred underwriting discount under certain circumstances.

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed financial statements were issued. Other than as described above, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

References in this report (the “Quarterly Report”) to “we,” “us” or the “Company” refer to Churchill Capital Corp. References to our “management” or our “management team” refer to our officers and directors, and references to the “Sponsor” refer to Churchill Sponsor LLC. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Special Note Regarding Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s ~~final~~Annual ~~prospectus~~Report ~~for~~on ~~its~~Form ~~Initial~~10-K ~~Public Offering~~ filed with the SEC. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview

We are a blank check company formed under ~~the~~ the laws of the State of Delaware on June 20, 2018 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar ~~business~~Business ~~combination~~Combination with one or more businesses. We intend to effectuate our Business Combination using cash from the proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, our capital stock, debt or a combination of cash, stock and debt.

The issuance of additional shares of our stock in a Business Combination:

• may significantly dilute the equity interest of investors, which dilution would increase if the anti-dilution provisions in the Class B common stock resulted in the issuance of Class A shares on a greater than one-to-one basis upon conversion of the Class B common stock; • may subordinate the rights of holders of common stock if preferred stock is issued with rights senior to those afforded our common stock; • could cause a change of control if a substantial number of shares of our common stock are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; • may have the effect of delaying or preventing a change of control of us by diluting the stock ownership or voting rights of a person seeking to obtain control of us; and • may adversely affect prevailing market prices for our Class A common stock and/or warrants.

• may subordinate the rights of holders of common stock if preferred stock is issued with rights senior to those afforded our common stock;

• could cause a change of control if a substantial number of shares of our common stock are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors;

• may have the effect of delaying or preventing a change of control of us by diluting the stock ownership or voting rights of a person seeking to obtain control of us; and

• may adversely affect prevailing market prices for our Class A common stock and/or warrants.

Similarly, if we issue debt securities or otherwise incur significant indebtedness, it could result in:

• default and foreclosure on our assets if our operating revenues after a Business Combination are insufficient to repay our debt obligations; • acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; • our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand; • our inability to obtain necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is outstanding; • our inability to pay dividends on our common stock; • using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our common stock if declared, expenses, capital expenditures, acquisitions and other general corporate purposes; • limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; • increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and • limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

• acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;17

•Recent ~~our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand;~~Developments

•On ~~our~~January 14, ~~inability~~2019, toas ~~obtain~~amended ~~necessary~~on ~~additional~~February ~~financing~~26, if2019 ~~the~~and ~~debt~~March ~~contains~~29, ~~covenants~~2019, ~~restricting~~we ~~our~~entered ~~ability~~into tothe ~~obtain~~Merger Agreement ~~such~~by ~~financing~~and ~~while~~among the ~~debt~~Company, isHoldings, ~~outstanding~~Clarivate; Delaware Merger Sub; and Jersey Merger Sub. See Note 9 in Item 1 above for a description of the Merger Agreement and the transactions contemplated thereby.

• our inability to pay dividends on our common stock;

• using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our common stock if declared, expenses, capital expenditures, acquisitions and other general corporate purposes;

• limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

• increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and

• limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

Results of Operations

We have neither engaged in any operations ~~nor~~ nor generated any revenues to date. Our only activities from June 20, 2018 (inception) through ~~September~~March 3031, ~~2018~~2019 were organizational activities, ~~and~~ those necessary to prepare for the Initial Public Offering, described below, and, after our Initial Public Offering, identifying a target company for a Business Combination and activities in connection with the proposed Business Combination. We do not expect to generate any operating revenues until after the completion of our Business Combination. We ~~expect to~~ generate non-operating income in the form of interest income on marketable securities held in the Trust Account. We ~~expect that we will~~ incur ~~increased~~ expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the three months ended ~~September~~March 3031, ~~2018 and for the period from June 20~~2019, ~~2018 (inception) through September 30, 2018,~~ we had net ~~income~~loss of $~~424~~1,~~717 and $423~~302,~~690~~081, ~~respectively,~~ which consists of interest income on marketable securities held in the Trust Account of $~~738~~3,~~355~~846, 538, offset by anoperating ~~unrealized~~costs ~~loss on~~of $4,412,950 ~~marketable~~and ~~securities~~a ~~held~~provision infor ~~our~~income ~~Trust~~taxes ~~Account~~ of $48735,~~430,~~669. ~~operating~~Business ~~costs~~Combination expenses of ~~$152,582~~approximately ~~and~~ $~~153~~4,~~609~~070,000 ~~respectively,~~are ~~and~~included ain ~~provision~~ operating costs for ~~income~~the ~~taxes~~three ofmonths ~~$112~~ended March 31,~~626~~ 2019.

Liquidity and Capital Resources

On September 11, 2018, we consummated ~~the~~an Initial Public Offering of 69,000,000 units, ~~which includes~~ including the full exercise by the underwriters of their over-allotment option in the amount of 9,000,000 ~~Units~~ units, at $10.00 per ~~Unit~~unit, generating gross proceeds of $690,000,000. Simultaneously with the closing of the Initial Public Offering, we consummated the sale of 18,300,000 Private Placement Warrants, at $1.00 per ~~Private~~private ~~Placement~~placement ~~Warrant~~warrant, to the Sponsor, generating gross proceeds of $18,300,000.

Following the Initial Public Offering, the exercise of the over-allotment option and the sale of the Private Placement Warrants, a total of $690,000,000 was placed in the Trust Account. We incurred $38,023,145 in Initial Public Offering related costs, including $13,800,000 of underwriting fees, $24,150,000 of deferred underwriting fees and $73,145 of other costs, which is net of a $588,000 reimbursement received from the underwriters.

As of ~~September~~March 3031, ~~2018~~2019, we had marketable securities held in the Trust Account of $~~690~~698,~~689~~421,~~925~~442 (including approximately $~~690~~8,421,000 of interest income~~, net of unrealized losses~~) ~~consisting~~ consisting of ~~U.S.~~money ~~Treasury~~market ~~Bills with a maturity of 180 days or less~~funds. Interest income on the balance in the Trust Account may be used by us to pay taxes. Through ~~September~~March 3031, ~~2018~~2019, we did not withdraw any interest earned on the Trust Account.

For the ~~period~~three ~~from~~months ~~June~~March 2031, ~~2018 (inception) through September 30~~2019, ~~2018,~~ cash used in operating activities was $~~522~~610,~~842~~540. Net ~~income~~loss of $~~423~~1,~~690~~302,081 was ~~impacted~~effected by interest earned on marketable securities held in the Trust Account of $~~738~~3,~~355~~846,538, ana ~~unrealized~~deferred ~~loss~~tax onprovision ~~marketable securities held in our Trust Account~~ of $4813,~~430~~098 and changes in operating assets and liabilities, which ~~used~~provided $~~256~~4,~~607~~551,177 of cash.

We intend to use substantially all of the ~~funds~~ funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (which interest shall be net of amounts withdrawn to pay our taxes) to complete a Business Combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete a Business Combination, the remaining proceeds held in the Trust Account after redemptions, if any, will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

As of ~~September~~March 3031, ~~2018~~2019, we had cash of $32,~~929~~917,~~013~~650 held outside the Trust Account. We intend to use the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete a Business Combination.

In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, our Sponsor, or ~~the~~our officers and directors may, but are not obligated to, loan us funds from time to time or at any time as may be required. If we complete a Business Combination, we would repay such loaned amounts out of the proceeds of the Trust Account released to us. In the event that a Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such loaned amounts, but no proceeds from our Trust Account would be used to repay such loaned amounts. Up to $1,500,000 of such loans may be convertible into warrants at a price of $1.00 per warrant at the option of the lender. The warrants would be identical to the Private Placement Warrants.

1418

We dohave ~~not~~principally ~~believe~~financed weour ~~will~~operations ~~need~~from toinception ~~raise~~using ~~additional funds~~proceeds infrom ~~order to meet~~ the ~~expenditures~~sale ~~required~~of ~~for operating~~ our ~~business.~~equity securities ~~However,~~to if our ~~estimate~~shareholders ofprior to the ~~costs~~Initial ofPublic ~~identifying a~~Offering ~~target~~and ~~business,~~such ~~undertaking~~amount ~~in-depth~~of ~~due~~proceeds ~~diligence~~from ~~and~~the ~~negotiating~~sale aof ~~Business~~the ~~Combination~~Private ~~are~~Placement Warrants ~~less~~and ~~than~~ the ~~actual~~Initial ~~amounts~~Public ~~necessary to~~Offering dothat ~~so,~~were weplaced ~~may~~in ~~have~~an ~~insufficient~~account ~~funds~~outside ~~available~~of tothe ~~operate~~Trust ~~our~~Account ~~business~~for ~~prior~~working tocapital ~~our~~purposes. As ~~Business~~of ~~Combination.~~March ~~Moreover~~31, 2019, we ~~may need~~had to$2,917,650 ~~obtain~~in ~~additional~~our ~~financing~~operating ~~either~~bank toaccounts, ~~complete~~$698,421,442 ~~our~~in ~~Business~~securities ~~Combination~~held orin ~~because~~the weTrust ~~become~~Account ~~obligated~~ to be ~~redeem~~used for a ~~significant number~~Business ofCombination ~~our~~or ~~public~~to ~~shares~~repurchase ~~upon~~or ~~completion~~redeem of our ~~Business~~common ~~Combination,~~stock in ~~which~~connection ~~case~~therewith weand ~~may~~working ~~issue~~capital ~~additional~~deficit of ~~securities~~approximately or$2,436,000, ~~incur debt~~which inexcludes ~~connection~~approximately ~~with~~$1,594,000 ~~such~~of ~~Business~~franchise ~~Combination.~~and ~~Subject~~income totaxes ~~compliance~~payable ~~with~~that ~~applicable~~may ~~securities~~be ~~laws,~~paid wefrom interest ~~would~~earned ~~only~~on ~~complete such~~the ~~financing~~Trust ~~simultaneously~~Account. ~~with~~In ~~the~~addition, ~~completion~~two of our ~~Business~~service ~~Combination.~~providers Ifhave weagreed ~~are unable~~ to ~~complete~~defer ~~our~~the ~~Business~~payment ~~Combination because~~of wefees doowed ~~not~~to them ~~have~~until ~~sufficient~~the ~~funds~~consummation ~~available~~of toa usBusiness Combination, wewhich ~~will~~amounted ~~be forced~~ to ~~cease~~approximately ~~operations~~$3,014,000 ~~and~~as ~~liquidate~~of ~~the~~March ~~Trust~~31, ~~Account~~2019. Based on Inthe ~~addition~~foregoing, ~~following~~we ~~our~~believe ~~Business~~we ~~Combination,~~will ifhave sufficient cash onto ~~hand~~meet isour ~~insufficient,~~needs wefor ~~may~~the ~~need~~next totwelve ~~obtain~~months ~~additional~~following ~~financing~~the indate from when ~~order~~the tofinancial ~~meet~~statements ~~our~~are ~~obligations~~issued.

Off-Balance Sheet Arrangements

We did not have any off-balance sheet arrangements as of ~~September~~March 3031, ~~2018~~2019.

Contractual obligations

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than anas ~~agreement~~described ~~to pay an affiliate of the Sponsor a monthly fee of $31,250 for office space, administrative and support services to the Company~~below. ~~We began incurring these fees on September 6, 2018 and will continue to incur these fees monthly until the earlier of the completion of the Business Combination and the Company’s liquidation.~~

We have agreed to pay an affiliate of our Sponsor a monthly fee of $31,250 for office space, administrative and support services to the Company. We began incurring these fees on September 6, 2018 and will continue to incur these fees monthly until the earlier of the completion of the Business Combination and our liquidation. Additionally, we lease space for corporate purposes under a lease agreement that expires in November 2019. We incurred rent expense under the lease amounting to approximately $23,000 for the three months ended March 31, 2019. Future minimum lease payments due under the lease amount to approximately $72,000 for the year ended December 31, 2019.

Critical Accounting Policies

The preparation of financial statements ~~and~~ and related disclosures in conformity with accounting principles generally accepted in the United States of America ~~(“GAAP”)~~ requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. ~~The~~We ~~Company~~have ~~has~~ identified the following critical accounting ~~policy.~~ policies:

Common stock subject to possible redemption

We account for our common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within ~~the~~our ~~Company’s~~ control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. Our common stock features certain redemption rights that are considered to be outside of our control and subject to occurrence of uncertain future events. Accordingly, ~~at September 30, 2018,~~ common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of our balance ~~sheet~~sheets.

Net loss per common share

We apply the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption which are not currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic net loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. Our net loss is adjusted for the portion of income that is attributable to common stock subject to possible redemption, as these shares only participate in the earnings of the Trust Account and not our income or losses.

Recent accounting standards

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on our financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

~~Following~~As ~~the consummation~~ of ~~our~~March ~~Initial~~31, ~~Public Offering~~2019, wesubstantially ~~invested~~all of the ~~funds~~assets held in the Trust Account inwere ~~money~~held ~~market~~in ~~funds~~short ~~meeting~~term ~~certain~~money ~~conditions~~market ~~under Rule 2a-7 under the Investment Company Act, which invest solely in United States Treasuries~~funds. Due to the short-term nature of ~~the~~these ~~money market fund’s~~ investments, we do not believe that there will be an associated material exposure to interest rate risk.

1519

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures as of the end of the fiscal quarter ended ~~September~~March 3031, ~~2018~~2019, as ~~such~~ such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our principal executive ~~officer~~ officer and principal financial and accounting officer have concluded that during the period covered by this report, our disclosure ~~controls~~ controls and procedures were effective at a reasonable assurance level and, accordingly, provided reasonable assurance that the ~~information~~ information required to be disclosed by us in reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the fiscal quarter of ~~2018~~2019 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our ~~final~~Annual ~~prospectus~~Report ~~dated~~on ~~September 6,~~Form ~~2018~~10-K filed with the SEC. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in our ~~final~~Annual ~~prospectus~~Report ~~dated~~on ~~September~~Form 6,10-K ~~2018~~ filed with the SEC.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

~~In July 2018, the Sponsor purchased 11,500,000 shares (the “Founder Shares”) of the Company’s Class B common stock for an aggregate price of $25,000~~None. On August 31, 2018 and September 6, 2018, the Company effected stock dividends of 0.125 of a share of Class B common stock and one third of a share of Class B common stock, respectively, for each outstanding share of Class B common stock, resulting in 17,250,000 Founder Shares outstanding. The foregoing issuance was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended (“Securities Act”).

On September 11, 2018, we consummated the Initial Public Offering of 69,000,000 Units, which includes the full exercise by the underwriters of their over-allotment option of 9,000,000 Units. The Units sold in the Initial Public Offering, including pursuant to the over-allotment option, were sold at an offering price of $10.00 per unit, generating total gross proceeds of $690,000,000. Citigroup Global Markets Inc. acted as sole book-running manager of the Initial Public Offering. The securities in the offering were registered under the Securities Act on a registration statement on Form S-1 (No. 333-226928). The Securities and Exchange Commission declared the registration statement effective on September 6, 2018.

Simultaneous with the consummation of the Initial Public Offering, we consummated the private placement of an aggregate of 18,300,000 warrants, each exercisable to purchase one share of the Company’s Class A common stock for $11.50 per share (“Private Placement Warrants”), to Churchill Sponsor LLC at a price of $1.00 per Private Placement Warrant, generating total proceeds of $18,300,000. The issuance was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

The Private Placement Warrants are identical to the warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants are not transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable on a cashless basis and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees.

Of the gross proceeds received from the Initial Public Offering and the Private Placement Warrants, $690,000,000 was placed in a Trust Account.

We paid a total of $13,800,000 in underwriting discounts and commissions and $73,145 for other costs and expenses related to the Initial Public Offering, which is net of a $588,000 reimbursement received from the underwriters. In addition, the underwriters agreed to defer up to $24,150,000 in underwriting discounts and commissions.

For a description of the use of the proceeds generated in our Initial Public Offering, see Part I, Item 2 of this Form 10-Q.

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

None.

1720

Item 6. Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

No.		Description of Exhibit
1.1		Underwriting Agreement, dated September 6, 2018, between the Company and Citigroup Global Markets Inc., as representative of the underwriters. (1)
3.1		Amended and Restated Certificate of Incorporation
3.2		Bylaws (incorporated by reference to Exhibit 3.3 to the Registration Statement on Form S-1 filed by the registrant on August 17, 2018 (File No. 333-226928))
4.4		Warrant Agreement, dated September 6, 2018, between the Company and Continental Stock Transfer & Trust Company, as warrant agent. (1)
10.1		Letter Agreement, dated September 6, 2018, among the Company, its officers and directors and Churchill Sponsor LLC. (1)
10.2		Investment Management Trust Agreement, dated September 6, 2018, between the Company and Continental Stock Transfer & Trust Company, as trustee. (1)
10.3		Registration Rights Agreement, dated September 6, 2018, among the Company and certain other security holders named therein. (1)
10.4		Private Placement Warrants Purchase Agreement, dated September 5, 2018, between the Company and Churchill Sponsor LLC. (1)
10.5		Indemnity Agreement, dated September 6, 2018, between the Company and Balakrishnan S. Iyer. (1)
10.6		Indemnity Agreement, dated September 6, 2018, between the Company and Karen G. Mills. (1)
10.7		Indemnity Agreement, dated September 6, 2018, between the Company and Martin Broughton. (1)
10.8		Indemnity Agreement, dated September 6, 2018, between the Company and Malcolm S. McDermid. (1)
10.9		Indemnity Agreement, dated September 6, 2018, between the Company and Peter M. Phelan. (1)
10.10		Indemnity Agreement, dated September 6, 2018, between the Company and Sheryl von Blucher. (11)
10.11		Indemnity Agreement, dated September 6, 2018, between the Company and Jerre Stead. (1)
10.12		Indemnity Agreement, dated September 6, 2018, between the Company and Michael Klein. (1)
10.13		Administrative Services Agreement, dated September 6, 2018, between the Company and an affiliate of Churchill Sponsor LLC. (1)
31.1		Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*		XBRL Instance Document
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document
101.SCH*		XBRL Taxonomy Extension Schema Document
101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

~~(1) Previously filed as an exhibit to our Current Report on Form 8-K filed on September 12, 2018 and incorporated by reference herein~~21

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Churchill Capital Corp
Date: November 13, 2018	By:	/s/ Jerre Stead
Date: May 10, 2019	By:	/s/ Jerre Stead
	Name:	Jerre Stead
	Title:	Chief Executive Officer
		(Principal Executive Officer and Principal Accounting Officer)
Date: November 13, 2018	By:	/s/ Peter M. Phelan
Date: May 10, 2019	By:	/s/ Peter M. Phelan
	Name:	Peter M. Phelan
	Title:	Chief Financial Officer
		(Principal Financial Officer)

1922

Filing Compare · Churchill Capital Corp