🚀 AERKOMM Announces SPAC IPO

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The Space Scoop

Week Ended 04.05.2024

Happy Friday! It's a busy one this week — SPACs are back, a SpaceX IPO remains on hold, FY'2023 earnings have ended and Momentus could be facing a second reverse split. Lets dive in.

Market Max-Q

Top Stories

1) AERKOMM announced plans to go public via SPAC merger.

• The satellite technology company providing multi-orbit broadband connectivity solutions entered into a definitive Business Combination Agreement last week with IX Acquisition Corp. ($IXAQU).

• The transaction implies an enterprise value of $200M (plus up to $200M of earnout shares if certain milestones are achieved). The transaction also includes a $35M PIPE.

• AERKOMM shares are expected to result in a transfer of listing from Euronext / OTCQX to Nasdaq under the ticker $AKOM, following the closing of the business combination.

• The transaction is expected to close in Q3 2024, pending SEC review and shareholder approval.

 2) FY'2023 space earnings concluded this week with two SPACs finishing off reporting. Highlights include:

• $ASTS

  • • Cash & Equivalents: $88M • Revenue: $0 vs. $14M YoY • OpEx:  $223M, +45% YoY • Gross Capitalized Costs: $300M • Net Loss: $(88)M vs. $(32)M • Shares: -23.6%

• $LLAP

  • • Cash & Equivalents: $72M • Revenue: $136M, +44% YoY • Net Loss: $(152)M vs. $(164)M • Adj. EBITDA: $(78)M vs. $(70)M • Backlog: $2.7B ($2.4B = Rivada) • Shares: -12.5% 

3) Momentus ($MNTS) received a second minimum share price warning.

• Last week, Momentus received a Nasdaq deficiency notice that it's share price was below the minimum bid price of $1.00 per share. Momentus has been provided 180 days until September 23rd to regain compliance.

• Momentus completed its first 1-for-50 reverse stock split on August 24th, 2023 and first closed under $1.00 per share again on January 12, 2024.

• Investors would not want to see a second forced reverse split so soon again.. Momentus shares are down -75.6% YTD.

4) Virgin Galactic ($SPCE) hits back at Boeing ($BA) over lawsuit claims.

• Last week, we covered Boeing suing Virgin over trade secrets and missed payments. This week, Virgin Galactic fired back with a complaint, stating that “poor quality control and mismanagement” was what lead to the failing joint effort to develop a Mothership jet carrier.

• In the new lawsuit, Virgin argues that the disputed trade secrets were “rightfully transferred” to its control under terms of its contract. Branson’s company also alleges that Boeing failed to live up to its end of their agreement despite being paid more than $45M for its services.

• “Boeing repeatedly provided shoddy and incomplete work product to Virgin Galactic that was so deficient that, in at least one instance, Boeing agreed that it needed to start over completely with its work,” according to the complaint.

5) SpaceX's Chief Financial Officer shot down investor IPO hopes (again).

• Per Space Intel Report, the Company's CFO Bret Johnsen noted the company "is not looking to IPO anytime soon," and will consider a public listing only "when Starship and Starlink businesses stabilize."

• Bret also stated the firm has never used an investment bank “for any of the financings in my 13-years. We have just gone out and built the network” of investors. "The capital is available and it’s in a lot of different places these days.”

• Sitting at or near the top of the most valuable private companies, SpaceX does not need the public markets yet and we are sure Elon has taken notice of the punishment that is brought to those that aren't ready for the limelight yet..

In Other News

Lockheed Ventures Invests in Helcity Space

(Company)

The in-space fusion power propulsion and technology startup announced an undisclosed investment from the venture capital arm of Lockheed Martin (

$LMT

). This raise comes on the back of a $5M seed raise in December. In addition to the financial backing, Helicity will have the opportunity to work alongside Lockheed Martin’s researchers and engineers moving forward.

Descartes Labs Acquires Geosite 

(Company)

Descartes, the geospatial analytics and artificial intelligence solutions provider, announced the acquisition of all operating assets of Geosite, the SaaS provider of geospatial intelligence to property and casualty insurance companies, for an undisclosed amount.

HawkEye360 Raises $40M in Debt 

(Company)

The provider of space-based RF data and analytics announced the debt financing from Silicon Valley Bank to further its delivery of advanced geospatial capabilities. The financing will help further HE360 enhance technological infrastructure and continue building its satellite constellation.

SatSure Receives Minority Investment from TransUnion 

(PR Newswire)

The India-based satellite imagery startup specializes in helping enterprises in various industries, primarily focused on agriculture, improve their quality of decisions with EO data. The financing will be used to accelerate its product innovation with TransUnion (

$TRU

) in India.

Varda Raises $90M Series B 

(PR Newswire)

The funding for the in-space manufacturing and re-entry logistics startup follows successful reentry of the W-1 capsule. Varda aims to eventually launch capsules on a monthly cadence. The round was led by Caffeinated Capital, with participation from Lux Capital, General Catalyst, Founders Fund and Khosla Ventures.

Chart of the Week

(via BryceTech - Source)

Links

• SpaceX CFO: "No Need To Go Public Now"• Rocket Lab ($RKLB) Prepares to Launch Mission for KAIST and NASA• Boeing’s ($BA) Satellite Business Zeroes in on Military Opportunities• Telesat ($TSAT) and Canadian Government Agree to Terms on C$2.14B Loan• Terran Orbital ($LLAP) Regains Compliance with NYSE Continued Listing Standards• Tyvak International ($LLAP) Secures EDA Contract for Pioneering VLEO Satellite Project• Hughes ($SATS) Enables Worldwide LEO Connectivity with Eutelsat OneWeb Approval of New ESA• Iridium ($IRDM) Completes Satelles Acquisition & Introduces Iridium Satellite Time and Location• Mynaric ($MYNA) Completes Space Laser Terminal CONDOR Mk3 Initial Shipment• NASA Awards Intuitive Machines ($LUNR) $30M as a Prime Contractor to Complete a Lunar Terrain Vehicle Services Feasibility Assessment• Sidus ($SIDU) Offers Spacecraft Mission Control Center for Commercial Customers

Opinion

• The State of OSAM• The State of Launch• The State of Earth Observation• The State of Satcom• Terran Orbital ($LLAP) Is Unattractive Given Lockheed Martin's Takeover Offer• Virgin Galactic ($SPCE): More Downside Expected After Boeing Lawsuit• $ARKX: Space Is A Big Place To Invest In

Earnings Calendar

• $IRDM: Apr 18 - Before Market Open• $LMT: Apr 23 - Before Market Open• $GD: Apr 24 - Before Market Open• $NOC: Apr 25 - Before Market Open• $RKLB: May 6 - After Market Close

*Company confirmed dates only.