Momentus Looks to Go Public Through SPAC Merger
Momentus will become a publicly traded company through a merger with special purpose acquisition company (SPAC), Stable Road Acquisition Corp. In a Wednesday announcement, Momentus said the combined company will be valued at approximately $1.2 billion. The transaction is expected to close in early 2021 and the company will be listed on Nasdaq as “MNTS.”
Momentus, which is based in Santa Clara, California is a 2018 graduate of the Y Combinator startup program. The company is working on in-space transportation, capitalizing on the trend of more and more small satellites being launched to space. Momentus will shuttle satellites to their intended orbits after launch powered by water plasma propulsion technology and also has plans for Satellite-as-a-Service and in-orbit servicing. Its Vigoride transport vehicle is set for its first launch this December on a SpaceX Falcon 9 rocket with commercial customers, and it is designed to deliver small satellites up to 750 kg to precise destinations.
Stable Road is a SPAC with about $173 million cash held in trust. $175 million has been raised in private investment in public equity (PIPE), including $10 million from Stable Road before the announcement. Post-transaction, Momentus will have about $310 million in cash with no plans for additional capital needs before profitability.
Founder and CEO Mikhail Kokorich said Momentus will use the funds for growth and operations and support capital needs.
“Momentus is at the forefront of the new space economy and is poised to capitalize on the significant growth opportunity as a first mover; we believe in a future where humanity is equipped with all it needs to flourish throughout the solar system. Our mission is to provide the infrastructure services that support all industry beyond Earth,” Kokorich commented.
Momentus has customer contracts representing approximately $90 million in potential revenue over the next several years. The company has purchased space on SpaceX SmallSat Rideshare Program missions, on which Momentus will offer customers custom drop-off altitudes and orbits. The company recently signed two new launch service agreements with Pixxel and GP Advanced Projects. It also has launch service agreements with Lockheed Martin, NASA, and a partnership with Made In Space Europe (MIS EU) to develop a robotic spaceflight mission planned for 2022.