A merger between a special-purpose acquisition company (SPAC) and in-space transportation startup Momentus was approved by SPAC shareholders on August 11, the first of several such mergers scheduled to close in the coming month. At a special meeting, Stable Road Acquisition Corporation shareholders approved a merger with Momentus, with 97 percent voting in support of the agreement. At the meeting, however, only around 55 percent of outstanding shares were represented by shareholders.
The combination of Stable Road and Momentus is set to close on August 12th due to that vote. On August 13, the amalgamated firm will begin trading on Nasdaq under the Momentus name, with the ticker code MNTS. Shareholders representing 20 percent of Stable Road’s stock chose to exchange their stocks rather than engage in the merger, which is a significant percentage. The amount of money Momentus will receive from the SPAC will be decreased from $173 million to about $137 million. Private investment in a public equity financing round will provide an extra $110 million in addition to the SPAC agreement.
The vote brings an end to a long and frequently contentious merger that was first announced ten months ago. The debut of the company’s first Vigoride tugboat was delayed due to a number of legal and regulatory concerns, many of which were tied to the company’s Russian co-founders Lev Khassis and Mikhail Kokorich. Momentus and the federal government secured a national security deal after those co-founders divested their shares.
Momentus’ worth was halved to $567 million after Stable Road altered its arrangement with the company. In July, both firms reached a settlement with the Securities and Exchange Commission (SEC) over false representations they made about the maturity of their technology and national security issues surrounding Kokorich.
The Momentus SPAC transaction will be the first of numerous that will conclude in the coming months. NavSight Holdings shareholders will vote on a merger with the smallsat constellation provider Spire on August 13, while Vector Acquisition Corp. shares will vote on a merger with Rocket Lab on August 20.
Genesis Park Acquisition Corporation stated on Aug. 11 that its shareholders would decide on its merger with the Redwire Company, a space component, and production company, at a special meeting on Sept. 1. On August 11, Osprey Technology Acquisition Corporation stated that its shareholders would vote on a merger with the Earth observation business BlackSky on September 8.
Even as this surge of SPAC transactions comes to an end, some entrepreneurs and investors remain skeptical. SPACs allow companies to go public more quickly, but there is a misconception that they are less stringent than a standard initial public offering (IPO).