The potential for growth in the space market has been drawing attention from investors. And the space sector could get more attention over the next couple weeks with the Ark Funds space ETF set to launch as early as this coming Monday.
Here is a look at the space-related SPACs that could be added to the fund and also could be investment opportunities for investors looking for exposure to the sector:
Virgin Galactic: Shares of Virgin Galactic Holdings Inc (NYSE: SPCE) are down from 2021 highs of $62.80. The company, which plans on taking tourists to space has had several setbacks including ending recent test flights earlier than expected.
Virgin Galactic is set to unveil its SpaceShip Three fleet vehicle on March 30 according to the timeline announced in its February conference call.
The company has collected deposits from 600 customers who paid $250,000 each to board a future flight to space with Virgin Galactic.
Momentus: Going public with the SPAC Stable Road Acquisition Corp (NASDAQ: SRAC), Momentus is a space company that could attract the interest of Cathie Wood and Ark Funds. The company has been called the “FedEx of Space” by Barron’s and is often referred to as a “zero gravity logistics player.” The company has a deal in place with SpaceX and plans to launch satellites as a service in the future. The company forecasts annual revenue to hit $1 billion by 2024.
AST: Billed as the “5G from space” company, AST is a unique offering for investors in both the space and telecommunications sector. The company, which is merging with New Providence Acquisition Corp (NASDAQ: NPA), counts Vodafone Group (NASDAQ: VOD) as a customer and investor.
AST has plans to launch 20 satellites in equatorial regions targeting 1.6 billion people first. The second phase is to launch 168 global satellites for the European and North American markets. The company is several years away from having significant revenue. AST calls for hitting 9 million subscribers in the year 2023 and 373 million by the year 2027.
Astra: Founded by former NASA Chief Technology Officer Chris Kemp, Astra is one of only a handful of companies that have successfully made it to space. The company plans on delivering customer payloads this summer and begin monthly launches by the end of 2021.
Astra, merging with Holicity (NASDAQ: HOL), can mass produce a portable launch system to launch from anywhere in the world within 24 hours. The company said it has an affordable path to space for government and commercial customers. Deals are in place with NASA and five government customers.
Astra has over 50 launches in its backlog and a pipeline of over $1.2 billion in deals.
Rocket Lab: Rocket Lab, merging with Vector Acquisition Corp (NASDAQ: VACQ), is the second most frequently used U.S. orbital rocket company, trailing only SpaceX. The company has completed 19 launches to space, with its first successful launch coming in 2018. The company has deployed over 100 satellites for government and private companies.
Rocket Lab has missions booked for trips to the Moon in 2021, Mars in 2024 and Venus in 2023. The company has a pipeline of $2.2 billion in deals, including $1.2 billion for launch-related revenue. The backlog represents 90% of fiscal 2021 projected revenue.
Related Link: 10 SPACs Owned By Cathie Woods, Ark Funds
Spire Global: Space-based data and analytics company Spire Global is going public via SPAC merger with NavSight Holdings Inc (NYSE: NSH), valuing the company at $1.6 billion. The company has a constellation of over 100 satellites and is seeking to pioneer the space-as-a-service business model.
The company serves over 150 customers and processes five terabytes of data per day. The company offers fast, scalable and reliable access to space at a fraction of the cost and time. Revenue for the company is expected to grow at a compounded annual growth rate of 100% from fiscal 2020 to fiscal 2025.
BlackSky: Satellite company BlackSky is going public with Osprey Technology Acquisition Corp (NYSE: SFTW). The company uses artificial intelligence and machine learning on its satellites for Earth observation. The company’s proprietary technology stack includes a constellation of high-resolution small satellites that monitor global events and activities.
The company aims to set up a constellation of 30 high resolution multi-spectral satellites capable of monitoring locations on Earth every 30 minutes. BlackSky also announced a multi-launch agreement with Rocket Lab for nine additional satellites across five missions this year.
Velo3D: A SPAC backed by Barry Sternlicht and Serena Williams is bringing 3D metal printer company Velo3D public. Jaws Spitfire Acquisition Corp (NYSE: SPFR) agreed to a $1.6 billion merger with the company.
Velo3D counts SpaceX as an investor and customer. The 3D printing company helps create engines and other components for SpaceX rockets. The company sells its printers using two methods: Companies can buy the custom 3D printers and license the design software, or they can pay for the printers and software in a single bundled service.
Redwire Space: Space infrastructure company Redwire Space announced a $615 million merger with Genesis Park Acquisition Corp (NYSE: GNPK). Redwire Space offers business in on-orbit servicing, low earth orbit commercialization, digitally engineered spacecraft, space domain awareness and advanced sensors and components.
The company has commercial and national security customers, with a contracted backlog of $150 million. Redwire Space sees revenue growing at a compounded annual growth rate of 72% from 2021 to 2025.
Disclosure: Author is long shares SPCE, HOL, SPFR, SRAC.
Photo by NASA on Unsplash.
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