A SPAC deal annoucned Monday is bringing another pure play space stock to market for investors to consider.
The SPAC Deal: Rocket Lab is going public in a SPAC deal with Vector Acquisition Corporation VACQ valuing the company at a pro forma enterprise value of $4.1 billion.
The SPAC merger is expected to fund the development of the company’s reusable Neutron launch vehicle that's tailored for mega constellations, deep space missions and human spaceflight.
Shares of Rocket Lab will trade as RKLB on the Nasdaq if the merger is approved. Current Vector Acquisition Corporation shareholders will own 7% of the company after the merger.
About Rocket Lab: One of only two U.S. commercial companies delivering regular access to orbit, Rocket Lab and SpaceX are the major players in the market.
Over the last six years, Rocket Lab has completed 18 launches to space, with its first successful launch coming in 2018. The company has deployed 97 satellites for government and private companies across 16 missions.
Rocket Lab is the second most frequently used U.S. orbital rocket company, trailing only SpaceX.
Growth Ahead: The space market is estimated to grow to $1.4 trillion by 20230, according to the company’s investor presentation. The space market is worth $350 billion today, broken down as $10 billion for launches, $20 billion for space systems and $320 billion for space applications.
Rocket Lab has missions booked for trips to the Moon in 2021, Mars in 2024 and Venus in 2023.
The Venus mission will search for life and the Mars mission will study the planet’s atmosphere.
Rocket Lab has recovered one of its rockets and is working on growing its reusable rocket program. The company has the only reusable small launch vehicle, the first 3D printed rocket engine and the first rocket that converts to a satellite on orbit.
In 2021, Rocket Lab said it will employ Electron and Photon to launch a satellite to lunar orbit for NASA. The launch will serve as a precursor for part of NASA’s Artemis program to return humans to the lunar surface, according to the company.
Rocket Lab Financials: Rocket Lab 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.
The company sees revenue of $69 million in fiscal 2021 and $176 million in fiscal 2022. The company’s investor presentation predicts revenue all the way out to 2027, when it forecast a total of $1.57 billion.
VACQ Price Action: Shares of Vector Acquisition Corporation were up 26.84% to $13 at last check Monday.
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