Unlike Virgin Galactic that offers space tourism Momentus will be responsible for satellites & space infrastructure, aspiring to be the first company to mine an asteroid. As crazy as this sounds they already have contracts with SpaceX, Nasa & 16 other space companies. This has to be one of the most under rated SPACs “Special Purpose Acquisition Company” considering it will be the second publicly traded space company next to Virgin Galactic.
Before we analyse the SPAC Stable Road Acquisition Corp that’s merging into Momentous, lets learn more about Momentus and there current plans to dominate space infrastructure.
Momentus Stock The Satellite Space Infrastructure Company
Momentus has some aspirations that are admirable to say the least, Every one of there services will make missions possible that otherwise would have never been. Last-mile satellite and cargo delivery will combine with rideshare launch to make any precise destination orbit affordable. There hosted payload service will take years of development off of companies mission timelines. The in-orbit services will bring late-mission relief repairing satellites extending there longevity.
The current size of the global space economy is expected to grow from an estimated $415 billion to $1.4 trillion by 2030 driving demand for transportation and infrastructure services in space. With the significant market opportunity in the new space economy, Momentus is well-positioned to address the need for in-space transportation and infrastructure services. Utilizing a multi-pronged approach, Momentus is developing capabilities to provide critical infrastructure services: in-space transportation, satellite as a service, and in-orbit services. The Company has strong momentum from the rapidly expanding small satellite market, which is seeking low-cost and regular launch access to orbit. Momentus’ customers include satellite operators, satellite manufacturers, launch providers, defense primes such as Lockheed Martin and government agencies such as NASA. As of September 30, 2020, the Company had customer contracts which represent approximately $90 million in potential revenue over the next several years.
- Over 1.1 Billion in negations with expected growth in the billions by 2024
- Space transportation services – first hub and spoke model of space, providing last mile satellite delivery in partnership with key launchers, such as SpaceX and 16 others.
- Satellites as a service – hosted payload services that significantly decrease the cost of developing, launching and maintaining satellites
- In orbit service – maintaining, repairing and refueling satellites in orbit
- Ground breaking reusable water propulsion system that significantly reduces costs and is reusable
You will find more on there investor relation page here but let’s review the SPAC stock making all this possible SRAC
Stable Road Acquisition Corp NASDAQ SRAC
Stable Road (NASDAQ: SRAC) is a publicly listed special purpose
acquisition company with ~$173M cash held in trust when merged in early 2021 ticker will be NASDAQ: MNTS
▪ Raised $175M in PIPE commitments, including $10 million from Stable
Road, before transaction announcement
▪ PF enterprise value of $1.2B with well capitalized balance sheet
▪ Implies an attractive valuation versus peer averages (~80% discount to
▪ Post-transaction, Momentus will have ~$310M in cash to enhance
operations, growth and path to profitability
▪ No additional capital needs expected prior to achieving profitability
▪ ~75% existing Momentus shareholders, ~14% SPAC and founder shares,
~12% PIPE investors shares will be listed at $10 a share.
IS SRAC Stock A Buy?
Right now this is by far one of the most under rated SPACs trading close to it’s base value of the units issued. Considering this has more utility then Virgin Galactic and can contract with every space company it has some unique prospects.
For a trade this may be more appropriate as the risk reward prospects right now are incredible. As holding companies don’t function like regular stocks and they can only hold your money at a small premium to the initial unit price unless hype drives the unit price up. Meaning if the transaction doesn’t fall through you get about 95% of your money back from the current share price at around $10 a share. So if you hold the stock today on the assumption toward merging in February you will be able to ketch hype and sell into the news, you upside potential is far greater then the downside risks.
Long term investing in this company will come with risk as this is a brand new industry and will likely have amazing outcomes or lackluster investor expectations so understand your risk accordingly.