🚀 Terran Orbital Seeks Buyer

🚀 Terran Orbital Seeks Buyer

December 15, 2023

The Space Scoop

Week Ended 12.15.2023

Happy Friday! We're back this week with some heat.. Lets dive right in.

Market Max-Q

Top Stories

1) SpaceX hits $180B valuation via ongoing secondary share offering. 

  • The company is discussing an agreement with investors to sell stock from insiders at a purchase offer of $97 per share, according to sources.

  • This is a +20% increase in valuation since the last employee tender offer in July 2023 at $150B. SpaceX typically conducts these secondary offerings about twice a year.

  • This offering is not a fresh capital raise and is expected to close in January.

2) Terran Orbital ($LLAP) seesaws on strategic alternative rumors that are later confirmed more or less truthful.

  • On Monday morning, the WSJ reported that the satellite maker was "looking to sell itself" and is "seeking bids by the end of the month and has attracted interest from potential strategic and financial buyers in the US and Europe."

  • CEO Marc Bell addressed these rumors to employees over email shortly after noting "the WSJ got the story very wrong" and that “we are working with them to correct. My goal is to keep us independent and turn us into a Prime. Nothing has changed. The company recently sued one of the Sophis idiots and we will be suing them all in due course. They will eventually go away.” 🔥spicy

  • He continued, noting that “We are not looking for a buyer." He rather told staff that IF the Board decided on a take-private deal, Bell and a business partner would acquire the company themselves.

  • In a follow-up (and contradictory) SEC filing, LLAP confirmed it is "conducting a formal review of strategic alternatives to maximize shareholder value. The Company has engaged Jefferies to provide transaction advisory services in connection with this process, which may include an investment, sale of the Company, take private transaction or an alternative strategic relationship."

  • LLAP shares finished the week -14.2% lower. Lets see what emerges of this.

3) Planet ($PL) reported Q3'2024 earnings results. Highlights include:

  • Cash & Equivalents: $315M

  • Revenue: $55M, +11% YoY

  • Net Loss: $(38)M vs. $(40)M

  • Adj. EBITDA: $(12)M vs. $(13)M

  • Shares: -5.5%

4) iQPS IPO surged +82% in its Tokyo debut last week.

  • iQPS, or Institute for Q-shu Pioneers of Space, is a provider of synthetic aperture radar (SAR) satellite imagery and raised $23.7M in proceeds.

  • Upon IPO pop, shares traded up to ¥860 per share after a five hour delay due to a glut of buy orders. Shares soon faced heavy selling to close the day at ¥710, valuing the company at $169M. 

  • iQPS is the second space IPO to list on the Tokyo Growth Market following ispace inc's ($9348) debut in April 2023.

  • CEO Shunsuke Onishi stated: "We chose the best IPO timing to secure enough funds to launch more satellites and get frequent data. That is the most important thing to maximize SAR satellites' uninterrupted observation capabilities."

In Other News

Richard Branson Ends Further Virgin Galactic Investments 

Sir Richard told the Financial Times “We don’t have the deepest pockets after Covid, and Virgin Galactic has got $1B, or nearly. It should, I believe, have sufficient funds to do its job on its own.” He continued that he was “still loving” the VG project and that it had “really proved itself and the technology” of commercial space flight. Virgin Group still remains one of the biggest shareholders at 7.7%.

OurSky Raises $9.5M Seed

The developer platform for space applications provides real-time observational data and analysis of objects and activities in space. With the capital, OurSky plans to tie into existing infrastructures to build out a collective network and further the developer platform. The round was led by Upfront Ventures, with participation from Oceans Ventures, Venrex Investment Management, Marlinspike Partners and Embedded Ventures.

NorthStar Earth & Space Raises $14.7M Series D 

The Canadian based Company will use the funds to support the deployment of an initial four satellites to monitor space, commence commercial SSA services, and establish a data processing center in Montreal. The round was led by Telesystem Space Inc., the government of Quebec (via Investissement Québec), and the Luxembourg Future Fund - Co-Investments SA.

True Anomaly Raises $100M Series B 

The space domain awareness, security, and readiness startup will continue to invest in their people, products, and services with the capital. The round was led by Riot Ventures with participation from Eclipse, ACME Capital, Menlo Ventures, Narya, 645 Ventures, Rocketship.vc, Champion Hill Ventures, and FiveNine Ventures.

Helcity Raises $5M Seed Round 

The fusion power in-space propulsion and power tech startup will use the capital to advance their proprietary technology (Helicity Drive), which consists of scalable fusion propulsion engines to enable safer, faster, reusable and more fuel-efficient travel into deep space. The round was led by new investors Airbus Ventures, TRE Ventures, Voyager Space Holdings, E2MC Space, Urania Ventures and Gaingels.

Armada AI Raises $55M Funding 

Emerging from stealth, the edge computing startup focuses on portable Starlink-dedicated data centers that give oil rigs, battlefields and off-the-grid sites real-time data processing capabilities. The round was led by Founders Fund, Lux Capital, Shield Capital and 8090 Industries.

Chart of the Week

BryceTech Briefing: In Q3, SpaceX led with 519 spacecraft launched for 381,278 kg of spacecraft upmass, blowing away its next nearest competitor CASC by a long shot. 

Links

• EUMETSAT Awards Spire ($SPIR) Multi-Million Euro Contract for Satellite Weather Data• Sidus ($SIDU) Integrates Edge AI Into LizzieSat in Preparation for Initial Launch• Planet ($PL) Adds Planetary Variables Products to Sentinel Hub For Greater Usability of EO Data• Mynaric ($MYNA) Receives $33M Order From Northrop Grumman ($NOC)• Rocket Lab ($RKLB) Reaches New Annual Launch Record With 10th Electron Mission This Year• Tyvak International ($LLAP) Completes Test Readiness Review of the Milani Nano Satellite• L3Harris ($LHX) Suspends M&A Program for 'Foreseeable Future'

Opinion

• Relativity Space: The Independent Investment Guide• Deep Tech Exits: Not Just Science Fiction Anymore• BlackSky ($BKSY) Continues To Make Progress• Satellogic ($SATL): Nice $140B Market, Bad Investment• Rocket Lab ($RKLB): From Earth to the Moon and In Between• Terran Orbital ($LLAP): A High-Risk Bet for Investors Willing To Embrace a Bumpy Ride• Rocket Lab ($RKLB): I Still Believe Execution Remains on Point