The Daily Dish (09/07/21)
Shares in Redwire (Ticker: RDW), a space infrastructure conglomerate rocketed 16% when it began trading on the NYSE on Friday after completing its SPAC Genesis Park. Redwire is the sixth space company to go public through a SPAC deal following AST & Science, Astra, Spire Global, Momentus and Rocket Lab.
Several Space companies expect to complete their deal before the end of the year, with the pipeline including BlackSky, Satellogic and Planet. The deal values Redwire at $675 million and provides the company with $170 million in cash. Redwire has spent the better part of the last year acquiring and integrating seven space companies into one and plans to use the cash from the deal to continue M&A spend.
Company Chairman and CEO Peter Cannito believe that Redwire is well-positioned from an investment perspective as it is a pure-play space stock generating over $100 million in annual revenue and is cash-flow positive.
Redwire operates in five areas which include: space commercialisation, digitally engineered spacecraft, on-orbit services and manufacturing, advanced sensors and components, and space domain awareness. The company estimates that the opportunities across these segments equate to a $15 billion addressable market.
Huge gains over the last week mean that Rocket Lab has now eclipsed the valuations of its rivals Virgin Galactic and Astra.
Shares are up 47% over the last week, with shares up 7% pre-market. Shares were trading close to $14.50, implying a $7.2 billion valuation and valuing founder Peter beck’s stake at close to $800 million.
Virgin Galactic is trading at $24 implying a $6.3 billion valuation and Astra was down 7% at $9.5 implying a $2.45 billion valuation.
The recent developments mean that Rocket Lab is now the king of publicly listed, pure-play space transportation stocks, even if it trails privately-held SpaceX, which was last valued at $74 billion by some margin.
Concord Acquisition Corp, which is set to merge with Circle, may in fact be undervalued considering the potential $2.3 trillion cryptocurrency market.
A merger vote between Fusion Acquisition Corp and Money Lion is set for September 21st. If the merger is approved the deal is expected to close on September 22nd.
Genius Sports and Caesars have agreed to a multi-year data and advertisement partnership that includes access to official NFL gambling products.