The proposed combination of Santa Clara, California-based in-space transportation services provider Momentus and Stable Road Acquisition (Nasdaq: SRAC), a special purpose acquisition company, is now valued at approximately $700 million under an amended merger agreement that reflects changes in Momentus’ launch schedule.
Momentus said Wednesday its current stockholders will see their ownership in the combined company increase from approximately 46 percent to 55 percent under the revised agreement following the complete divestment of shares held by Momentus co-founders and their associated entities on June 8.
Stable Road stockholders and private investment in public equity investors will have increased ownership of about 45 percent in the combined company, up from 28 percent under the original merger agreement.
Momentus decided to withdraw its 2021 flight plan in May to address national security concerns and now expects the first two Vigoride orbital transfer vehicles to make their inaugural flight in June 2022 under the revised plan, subject to the company’s receipt of government launch licenses and related approvals.
In June, Momentus and its co-founders entered into a national security agreement with the departments of Defense and the Treasury, which are acting on behalf of the Committee on Foreign Investment in the United States. In accordance with the NSA, the company’s co-founders and related entities divested all of their equity options and stock for up to $50 million, which will be paid by Momentus upon the deal’s completion.
Momentus announced in October that it will go public by agreeing to merge with Stable Road in a transaction that valued the combined entity at approximately $1.2 billion.