🚀 Arqit in Hot Water

🚀 Arqit in Hot Water

April 22, 2022

The Space Scoop

Week Ending 04.22.2022

Happy Friday! Markets closed out the week ugly, the Wall Street Journal published a potentially concerning report about Arqit Quantum, Redwire entered into an $80M stock purchase agreement, Iridium reported first quarter earnings and Rocket Lab will soon launch 15 HawkEye satellites from Virginia. Lets dive in.

Market Max-Q 📈

Indexes:S&P 500: 4,271.79 -2.8%NASDAQ: 12,839.28 -3.8%ETFs:UFO: 23.68 -6.1%ROKT: 39.73 -3.4%ARKX: 15.93 -6.4%ORBT: 18.33 -4.1%SSIT: 102.2 -4.3%Weekly Movers:LLAP: 4.75 +12.0%BKSY: 1.60 -17.5%ASTS: 7.42 -18.9%ARQQ: 7.85 -47.9%

Top Stories 🚀 

Redwire Enters Into $80M Stock Purchase Agreement

After market close on Friday, $RDW announced it has entered into a common stock purchase agreement with B. Riley Principal Capital to support its growth. The agreement provides the right, without obligation, to sell and issue up to $80M of Redwire common stock over a 24-month period at the Company’s sole discretion."The agreement allows us the discretion to raise additional capital when market conditions are favorable and there is a specific need,” said Peter Cannito CEO.

Arqit in the Hot Seat

On Monday evening, the WSJ released a report that $ARQQ potentially "overstates its prospects" with claims coming from former employees and people outside the company calling out the company's capabilities and relevance of technology. Founder and CEO David Williams told investors when his company IPO'd that it had an “impressive backlog” of revenue and was ready “for hyperscale growth.”Did Arqit give investors an overly optimistic view of its future revenue and the readiness and workability of its signature encryption system? Time will tell as we won't have an answer to this just yet. A lawsuit has been filed on Wednesday by Bragar Eagel & Squire. Shares fell -16.3% on the news.

Iridium Q1'2022 Earnings

2022 space earnings are underway this week with $IRDM kicking off the party. Highlights include:• Revenue: $168.2M, +14.8% YoY• Operating Income: $19.2M, +113.3% YoY• Oper. EBITDA: $103.2M, +14.9% YoY• Billable Subscribers: 1.781M, +17.3% YoY• Shares finished +6.4% higher.

Rocket Lab & HawkEye 360 Enter Into Launch Agreement

On Tuesday, Rocket Lab announced it had been selected by HawkEye 360 for a multi-launch contract for the company between late 2022 and 2024. $RKLB will deliver 15 satellites to LEO across three Electron missions.Rocket Lab will first deploy three HawkEye 360 satellites as part of a rideshare mission, followed by six satellites each on two dedicated Electron launches. The first mission is scheduled to be Rocket Lab's inaugural mission from Launch Complex 2 in Virginia no earlier than December 2022. Shares finished the +0.3% higher on the news.

Planet Reveals New Pelican Satellite Details

On Thursday, $PL released new details about their next-generation satellite constellation, Pelican. Highlights include:• Up to 32 new satellites• Up to 30cm resolution images• 12 imaging opportunities per day over the Earth• Up to 30 imaging opportunities per day in mid-latitudes“We have designed our next generation fleet to meet the evolving needs of customers who want real-time information about global events as they unfold," said Planet’s co-founder and CEO Will Marshall. Shares finished -5.3% lower on the day.

In Other News 🛰️ 

Delta Airlines Testing Starlink Service 

(WSJ)

$DAL has reportedly been in talks with and conducted "exploratory" tests of Starlink’s technology per a recent interview. Further details were not discussed.

Lockheed Reports Q1'22 Earnings

$LMT's space business segement reported $2.5B in net sales, down -15.1% YoY, and an operating profit of $245M, +7.9% YoY. The increase was primarily attributable to ~$35M of higher equity earnings from ULA driven by higher launch volume.

Booze Allen Invests in Reveal Technology 

$BAH announced a strategic investment in Reveal Technology, a visual analytics and edge artificial intelligence company. Details were not disclosed.

Planet Forms Strategic Relationship With Moody’s 

In an effort to explore and address the growing demand for assessing and monitoring on ESG risks, $PL and $MCO will look to address how data and products can be leveraged to refine existing offerings.

Maxar Makes Strategic Investment in Blackshark.ai 

$MAXR's investment in Blackshark, a provider of AI-powered geospatial analytics services, will allow additional 3D capabilities to broader markets for more customers and opens up a new revenue stream from Blackshark. 

Quick Links 🔗

• JSX Charter Airline Partners with Starlink• Planet ($PL) Partners With SynMax• U.S. Commits to Ending Anti-Satellite Missile Testing• Planet ($PL) Joins ESA Third Party Mission Program• BlackSky ($BKSY) Utilizes Agile Operations To Support Customers During Ukraine Crisis• OneWeb Agrees To Satellite Launch Program With New Space India• Sierra Space Announces New Chief Operating Officer• Momentus ($MNTS) Completes Vibration Test of Vigoride Orbital Transfer Vehicle• Jefferies Initiates Coverage and Buy Rating on Terran Orbital ($LLAP)• Astrobotic Unveils Private Robotic Lunar Lander• BlackSky ($BKSY) Upgrades Customer Site Monitoring With Enhanced Analytics and Imaging Capabilities

Opinion 🗣️

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Investing in These Innovations Will Get Us to Mars and Beyond

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Could Starlink Go Public via SPAC? Rumors of a Deal Increase

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Maxar ($MAXR): The Power of Satellite Imagery in the Russia-Ukraine Conflict

Calendar 📅

• $BA: April 27 - Before Market Open• $GD: April 27 - Before Market Open• $MYNA: April 28 - 11:00am EST• $SPCE: May 5 - After Market Close• $MDA: May 11 - Before Market Open• $BKSY: May 11 - Before Market Open• $SPIR: May 11 - After Market Close• $MAXR: May 11 - Shareholder Meeting• $RKLB: May 16 - After Market Close

*Company confirmed dates only.

Chart of the Week 📊