Momentus To Become
Public Through Merger With Stable Road
Acquisition Corp
October 7, 2020
Momentus Inc. has signed a
definitive merger agreement with Stable Road
Acquisition Corp. that will result in the
Company becoming publicly listed. Upon the
closing of the transaction, the combined
operating company will be named Momentus Inc.
and its securities will be listed on Nasdaq and
trade under the ticker symbol “MNTS.”
Momentus graduated from the
prestigious Y Combinator program and has raised
venture and private funding from notable
investors such as Prime Movers Lab, Y
Combinator, Tribe Capital, University of Wyoming
Foundation, Lerner Enterprise, Tony Robbins, Joe
Montana’s liquid2VC fund and others.
The current size of the
global space economy is expected to grow from an
estimated $415 billion to $1.4 trillion by 2030
driving demand for transportation and
infrastructure services in space. With the
significant market opportunity in the new space
economy, Momentus is well-positioned to address
the need for in-space transportation and
infrastructure services. Utilizing a
multi-pronged approach, Momentus is developing
capabilities to provide critical infrastructure
services: in-space transportation, satellite as
a service, and in-orbit services. The Company
has strong momentum from the rapidly expanding
small satellite market, which is seeking
low-cost and regular launch access to orbit.
Momentus’ customers include satellite operators,
satellite manufacturers, launch providers,
defense primes such as Lockheed Martin and
government agencies such as NASA. As of
September 30, 2020, the Company had customer
contracts which represent approximately $90
million in potential revenue over the next
several years.
Momentus is creating the
first hub and spoke model in space by offering
last-mile delivery in partnership with key
launch operators, including SpaceX. Momentus
offers its customers significantly more
affordable access to space by combining the
capabilities of low-cost launch vehicles and
Momentus’ transport and service vehicles,
powered by water plasma propulsion technology.
Momentus plans to expand its offerings by
providing a satellite as a service model for
hosted payloads and an in-orbit service model
for satellite deorbiting, life extension,
refueling, and repositioning. In 2019, the
Company successfully tested its water plasma
propulsion technology in space.
Momentus has developed its
first transport and service vehicle, Vigoride,
to serve the needs of customers in Low Earth
Orbit by delivering small satellites up to 750kg
to precise destinations, and expects to provide
hosted payload services, and in-orbit services.
The Company plans to launch its first Vigoride
vehicle in December 2020 with commercial
customers and four to five Vigorides in 2021.
The Company is developing two larger, more
capable vehicles in its development plans:
Ardoride in 2022 and Fervoride in 2024 with the
goal of serving all orbits up to Geosynchronous
Orbit and even Lunar Orbit and handling payloads
of up to 4,000 kg. To extend the capabilities of
gigantic rockets like SpaceX’s Starship and Blue
Origin’s New Glenn, the Company is building its
largest vehicle to date – Fervoride, which the
Company expects to be capable of delivering up
to 20 tons of cargo anywhere from Low Earth
Orbit to Geosynchronous Orbit and into deep
space. Fervoride is expected to be a pathfinder
for the prospecting and use of space resources
such as water from the Moon and asteroids and a
technology enabler for the largest moonshot
opportunities like solar energy generation in
space.
“Momentus is at the
forefront of the new space economy and is poised
to capitalize on the significant growth
opportunity as a first mover; we believe in a
future where humanity is equipped with all it
needs to flourish throughout the solar system,”
said Mikhail Kokorich, Founder & Chief Executive
Officer of Momentus. “Our mission is to provide
the infrastructure services that support all
industry beyond Earth. The technologies we’ve
developed or built upon, including our
groundbreaking water plasma propulsion, will
support growing demand from the booming
satellite industry with affordable, versatile
and low risk transportation and infrastructure
services across private companies, government
agencies, and research organizations. We expect
to deploy the proceeds of this transaction to
support our rapid growth and operations, and to
support our capital needs as we ramp up
revenues. We are excited to partner with the
Stable Road team and look forward to leveraging
their capital markets expertise.”
Brian Kabot, Chairman &
Chief Executive Officer of Stable Road added,
“We set out to identify a disruptive company and
Momentus was the most unique and compelling
opportunity to create value through our
investment, as we believe the Company is primed
to be a leader in the rapidly growing new space
economy. As the only public, pure-play
commercial space company capable of
revolutionizing space infrastructure, Momentus
is poised to capitalize on its market-defining
position. We are excited to partner with
Momentus as the Company develops its technology
portfolio, continues to leverage deep customer
relationships across diverse private and public
sector applications, and expands its experienced
leadership team.”
Transaction Overview
Pursuant to the
transaction, Stable Road, which currently holds
approximately $172.5 million of cash in trust,
will combine with Momentus, which is estimated
to result in a pro forma enterprise value of
approximately $1.2 billion.
Momentus’ existing equity security holders will
hold approximately 75% of the issued and
outstanding shares of Class A common stock
immediately following the consummation of the
merger, assuming no redemptions by Stable Road’s
existing public stockholders.
Cash proceeds in connection
with the transaction will be funded through a
combination of Stable Road’s cash in trust and
through a $175.0 million fully committed common
stock PIPE at $10.00 per share, including
investments from private equity growth
investors, family offices and select top tier
public institutional investors.
The boards of directors of
both Momentus and Stable Road have unanimously
approved the proposed transaction. Completion of
the proposed transaction is subject to approval
of Stable Road and Momentus stockholders and
other closing conditions, including a
registration statement being declared effective
by the Securities and Exchange Commission, and
is expected to be completed in early 2021.