The Daily Dish (3/1/21)
Welcome to the Daily Dish. Every morning in your inbox subscribers receive some Dishes that we find interesting and we think that you should know more about.
We’ll try to lob ‘em up to you in a simple, clean format that you can read in 5 minutes before the market opens. (Trust me, we know what it’s like to wake up at 9:23am).
Here’s the first assist 👇
Rocket Lab, the leader among companies building small rockets to launch satellites, is going public through a SPAC merger that values the company at more than $4 billion when the deal closes. The company is combining with Vector Acquisition $VACQ, a special purpose acquisition company. Rocket Lab will list on the Nasdaq under the ticker RKLB when the deal closes, which is expected in the second quarter. The SPAC deal values Rocket Lab at an enterprise valuation of $4.1 billion, with the company expecting to have about $750 million in cash after the merger is complete. That cash includes up to $320 million from Vector Acquisition, as well as a $470 million PIPE round led by Vector Capital, BlackRock and Neuberger Berman, among other investors.
“This milestone accelerates Rocket Lab’s ability to unlock the full potential of space through our launch and spacecraft platforms and catalyzes our ambition to create a new multi-billion-dollar business vertical in space applications,” Rocket Lab CEO Peter Beck said in a news release. Rocket Lab also unveiled plans for a second, larger rocket called Neutron to lift even more payloads than its current Electron rocket. The company has launched 97 satellites on 18 Electron missions to date.
Its Electron rockets are priced at about $7 million per launch, standing at about 60 feet tall and capable of lifting as much as 300 kilograms to low Earth Orbit.
Founded by Beck in New Zealand in 2006, Rocket Lab is now based in Long Beach, California and has 530 employees. The company launches from a private complex on New Zealand’s Mahia Peninsula, and has built a launchpad at Wallops for Electron launches.
Rocket Lab holds a strong position in the launch market next to SpaceX, with the companies currently the two leaders regularly launching privately-developed rockets to orbit. Rocket Lab’s launch business booked revenues of $13.5 million in 2018, $48 million in 2019 and an estimated $33 million in 2020. Despite the hit last year, Rocket Lab expects launch revenue growth to rebound this year and steadily climb to $915 million by 2027.
Small satellite builder and data specialist Spire Global is planning to go public, announcing on Monday that it is the latest among multiple space companies to merge with a SPAC.
Spire Global is merging with special purpose acquisition company NavSight $NSH. When the deal closes, which is expected this summer, Spire Global will list on the New York Stock Exchanged under the ticker SPIR.
“Spire was founded nearly a decade ago to help lead, inspire, and create the business of space-based data. Today, our proprietary data and solutions help customers solve some of earth’s greatest challenges,” Spire founder and CEO Peter Platzer said in a press release.
The company’s Lemur satellites are small and comparatively inexpensive, each one hosting a variety of instruments. Spire’s satellites help forecast weather, track ships at sea and airplanes in flight.
Spire expects to raise about $475 million in cash proceeds through the merger, including $245 million in a PIPE round led by BlackRock, Hedosophia (the venture fund of U.K. investor Ian Osborne), and JAWS (the family office of investor Barry Sternlicht).
The merger values Spire at a $1.6 billion equity valuation based on the PIPE, according to the release.
The “Original Influencer” has accepted a new seat in the corporate boardroom. In a recent business announcement, Martha Stewart has joined BurgerFi $BFI as Board Chair of the Product & Innovation Committee (via GlobeNewswire). Although Stewart might not be on the line cooking burgers at a local BurgerFi restaurant, the appointment could spark an interest in the trendy burger chain.
Stewart herself commented, “BurgerFi’s chef-driven concept attracted me to the brand” (via Eat This Not That). Thinking of Stewart’s businesses, her brands drive the story of appreciating the good things in life (via Martha Steward Living). While a good burger might be subjective, people must enjoy that first bite before making that food declaration. Although the potential of Stewart’s impact on BurgerFi remains to be seen, the hope is for the business endeavor to “boost the brand and create strong value for the company,” according to BurgerFi’s press release.
After just 10 years in the business, BurgerFi seems to be looking to this Stewart connection to forward its story to a wider audience. With Martha Stewart joining the BurgerFi team, people unfamiliar with the restaurant brand should be hungry to learn more. The brand describes itself as “committed to serving the highest quality fresh food in an eco-friendly environment”. As Stewart mentioned in the corporate announcement, the “hand-crafted menu items” and the brand’s commitment to redefining “the way the world eats burgers” drew her to the company.
If you enjoyed today’s dish please gift it to a friend 👇
There’s No I In Trade
My goal is to create a community where people can educate themselves through the world of investing. I can’t do that alone, we need to build this community together. So tell me what you’re loving, tell me what you want to see more of tomorrow.