Momentus’ $1.2bn Merger with Stable Road Capital’s SPAC

By Aman Sharma, Gustaf Baavhammar, Christopher Lewis, Richard Isbister, Peter Moravec (London Business School) and Rahul Mepani, Athean Myat, Suchritha Patlolla, Sung Cho, Kevin Hwang (Cornell University)

 

Overview of the deal


Acquirer: Momentus 

Target: Stable Road Acquisition Corp 

Total Transaction Size: $1.2 Billion, Ticker (MNTS)

Closed date: 2021


To leverage its position in the in-space transportation and infrastructure service industry, Momentus unanimously agreed to merge with Special Purpose Acquisition Company, Stable Road Acquisition, creating the first publicly traded space infrastructure company.


Due to the merger, Momentus will have approximately $310 million in cash on the balance sheet, to be funded by Stable Road’s $172.5 million of money held in trust and $175.0 million from a fully committed common stock private investment in public equity at $10.00 per share. It also includes investments from private equity growth investors and family offices. The global space economy is projected to grow from nearly an estimated $145 billion to $1.4 trillion by 2030 by driving demand for transportation and infrastructure services in space.


 The new funding from the merger will fuel Momentus’s multi-pronged approach to developing space transportation capabilities, satellite as a service, and in-orbit services. The satellite market is mostly untapped and currently seeking low-cost and regular launch access to orbit. Momentus is looking to grow its customer acquisition value, and currently, its clients include satellite manufacturers, launch providers, and defense primes such as Lockheed Martin. Recently, Momentus launched 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.


Founder and CEO Mikhail Kokorich said Momentus would use the funds for growth, operations, and support capital needs.


“We need to develop our larger vehicles at the same pace SpaceX is developing Starship and Blue Origin is developing New Glenn. With the capital we will raise from this transaction, we’ll be able to move much faster on Ardoride and Fevoride to augment the capability of those big rockets to move stuff.” - (CEO Mikhail Kokorich)

Company Details: Acquirer – Momentus Inc.


Momentus is the first commercial space company to offer in-space transportation and infrastructure services that aim to sustain human-life in space. Most notably, Momentus has developed a cost-effective in-space transportation system that relies predominantly on water propulsion technology. The company is currently investing in critical services such as in-space transportation, satellite as a service, and in-orbit services. 


Founded in 2017, headquartered in Santa Clara, CA CEO: Mikhail Kokorich

Number of employees: 60+


Company Details: Stable Road Acquisition Corp


Stable Road Acquisition Corporation was founded in 2019 by SRC-NI Holdings LLC, an affiliate of Stable Road Capital. Stable Road Capital is a single-family office that focuses on value investing in credit and equities in both private and public markets. The company is active in the Cannabis industry, acting as investors and advisors for capital raises. Recent publicly announced activities include overseeing acquisitions for a US Cannabis REIT and investing in vaporisation technologies. They are the owner of the Special Purpose Acquisition Company (SPAC) ”Stable Road Acquisition Corp” created to execute this merger.