Shareholders of SPAC Stable Road Acquisition Corp voted to merge it with the private company Momentus. Tomorrow the SRAC ticker will be changed to the MNTS ticker and the combined company will begin trading on the Nasdaq exchange.
Momentus is a developer of space tugs that deliver satellites to final target orbits. Sending the first tug into space was planned for this year with a help of the SpaceX Falcon 9 rocket, but did not take place. Elon Musk’s company is the main partner of Momentus.
The last year has been challenging for Momentus. First, the founders of the company, Mikhail Kokorich and Lev Khasis, had to leave the company and sell all their shares, since their Russian citizenship posed a threat to the national security of the United States. After, SEC fined Momentus and SRAC for $8 million in light of “misleading investors”. Then Momentus valuation fell by half — from $1.1 billion to $567 million.
Due to all challenges, the merger of Momentus and Stable Road Aquisition Corp. was constantly postponed, but now it will finally happen. SRAC shares are currently trading at $10.2.
Global Technologies Private Portfolio purchased Momentus at $10 per share. We still see high potential in the company after the merger.
Momentus is developing a unique technology that significantly reduces the cost of putting satellites into orbit. At the same time, the satellite communications market is expected to grow rapidly this decade: by 2030 it will generate about $500 billion in revenue, and the number of active satellites in orbit is projected to increase 25 times.