Momentus SPAC Partner SRAC Rises On Valuation Cut Announcement

A SPAC deal announced in October has cut its valuation in a new SEC filing Tuesday after hours.

What Happened: Momentus, set to merge with Stable Road Acquisition Corp SRAC, has amended the terms of its SPAC merger.

The deal price was cut from $1.13 billion to $566.6 million as announced by the two companies in a filing Tuesday.

The merger vote was also extended from June 7, 2021 to Aug. 13, 2021.

A previous deal of the parent company agreed to repurchase shares from investor Prime Movers Lab Fund has been terminated.

The Board of Directors list for the combined company was also amended.

Related Link: 9 Space SPACs For Investors To Consider Ahead Of Ark Space ETF

Why It’s Important: Called by some as "the FedEx of space" and a last-mile delivery partner to companies like SpaceX, Momentus is one of several companies in the space sector going public via SPAC.

The company projected fiscal 2022 revenue of $152 million and fiscal 2023 revenue of $598 million as part of the company’s original projections.

The partners have faced several setbacks on the deal including changes in valuation, SpaceX partnership concerns and the resignation of the company’s CEO over foreign control concerns from the U.S. government.

Price Action: Shares of SRAC are up 5% after hours to $14 after gaining 5% in the regular trading session.

Disclosure: The author has a long position in shares of SRAC.