Momentus Makes Progress on CFIUS Review with National Security Agreement
Momentus has received a draft National Security Agreement (NSA) from the U.S. government that is a step toward approvals the company needs to go public in the U.S.
The company has faced national security concerns about the foreign ownership and control of the company after it announced plans to go public through a special purpose acquisition company (SPAC) merger in October of last year. Momentus had voluntarily filed for review from the Committee on Foreign Investment in the United States (CFIUS), and this draft agreement announced May 14 is the result of that review.
Momentus did not share specific details about what actions were mentioned in the NSA. But the company highlighted actions it has already taken to resolve concerns, including resignation of founding CEO Mikhail Kokorich, a Russian citizen, and voting arrangements that ensure that the shares of its co-founders can only be voted by U.S. citizens
“The receipt of the draft NSA follows three months of extensive work by the Momentus and [Stable Road Acquisition Corp.] teams,” said Momentus President Dr. Fred Kennedy. “The agreement will build on the mitigation plan that we shared with the Department of Defense and other CFIUS member agencies back in February. Although there is no assurance that the parties will reach agreement on the final terms of the NSA, if and once finalized, the NSA will document Momentus’ commitments to implement controls to ensure that the national security concerns described by the U.S. government as part of the CFIUS process are resolved.”
Kennedy also said the company hopes the U.S. Federal Aviation Administration will reconsider approval of its payload application that was recently denied, once the company has the NSA finalized.
These national security concerns have delayed Momentus’ efforts to go public through a SPAC merger with Stable Road Acquisition Corporation. On May 13, Stable Road shareholders voted to extend the merger deadline until August 13, keeping the merger prospects alive.