Momentus, the place infrastructure startup that delivers so-referred to as past-mile delivery providers by means of partnerships with organizations like SpaceX, is heading for the general public marketplaces.
The three-12 months-old organization stated this morning it will merge with Secure Road Money, a unique purpose acquisition organization, or SPAC. The merged entity will have an approximate valuation of $1.2 billion and will trade on the Nasdaq beneath the ticker image MNTS. The deal is envisioned to be finalized sometime subsequent year.
Momentus was lately named a single of Speedy Corporation‘s Most Modern Businesses for its water-based mostly propulsion system, which aids go satellites and cargo in room.
Momentus is 1 of a rising variety of startups to announce it will go general public by merging with a SPAC, also known as a blank-verify company. Just yesterday, health and fitness insurance provider Clover Health and fitness introduced it would go general public by merging with a SPAC led by Social Capital’s Chamath Palihapitiya. Own care manufacturer Hims said last 7 days it would select a identical route.
According to MarketWatch, 2020 has been a file year for SPAC mergers, with additional than 80 declared as of September. When they’ve develop into a popular pared-down alternate to the standard IPO approach, a modern report from Renaissance Money identified they typically consequence in lessen returns, and critics claim they could make it possible for firms to skirt regulatory safeguards. Jay Clayton, chairman of the Securities and Trade Fee, not too long ago vowed more scrutiny of the procedure.