We are watching a brand new sector of space stocks emerge on the public market and investors may be missing out on this soon to be major players in the space race. This week we saw Rocket Lab announce its plans to go public via SPAC ticker VACQ Vector Acquisition Corp and will be raising capital to build “neutron” there large scale orbital rocket that will compete against Space X rockets.
Rocket Lab is set to be the first publicly traded space stock that will operate large orbital rockets and be involved in inter planetary missions. Rocket Lab is also one of only two U.S. commercial companies ( Other being Space X ) delivering regular access to orbit with 97 satellites deployed for governments and private companies across 16 missions.
What You Need To Know About Rocket Lab SPAC Stock Merger Ticker VACQ
Current valuation On March 1, 2021, Rocket Lab entered into a definitive merger agreement with Vector. The transaction reflects an implied pro forma enterprise value of $4.1 billion for Rocket Lab, representing 5.4x 2025 projected revenue of approximately $750 million.
- Business combination values Rocket Lab at an implied pro forma enterprise value of $4.1 billion. Pro forma cash balance of the combined company of approximately $750 million at close
- Rocket Lab forecasts that it will generate positive adjusted EBITDA in 2023, positive cash flows in 2024 and more than $1 billion in revenue in 2026
- Group of top-tier institutional investors have committed to participate in the transaction through a significantly oversubscribed PIPE of approximately $470 million, with 39 total investors including Vector Capital, BlackRock and Neuberger Berman
- Transaction is expected to close in Q2 2021, upon which Rocket Lab will be publicly listed on the Nasdaq under the ticker RKLB
- Current Rocket Lab shareholders will own 82% of the pro forma equity of combined company
Is Rocket Lab Stock A Buy
There are currently only half a dozen publicly traded space stocks and the last catalyst to hit the sector was Cathie Wood projecting out ARKs future space ETF. A side from that the sector has largely fizzled out but this is good news to early investors that don’t want to pay such a high premium to enter the space race.
Now don’t get me wrong Rocket Lab SPAC is largely over valued today and won’t see profitable revenue for the next 4 years how ever it does generate revenue which is a rarity in the space race well also competing along side Space X. There are many ways to go about the space race but if your looking for a pure play on the hopes of similar hype to follow as seen in Virgin Galactic this SPAC may be for you.
It’s important to note that emerging sector stocks can be extremely attractive as there a very few to choose from so when attention drives into this new sector money will flow into few names and Cathie Wood has not announced the release of Space stocks there currently buying. For a hype play I would consider some of the space plays as this will only get more attractive as humans continue to explore the great beyond!