Smallsat rocket company Astra to go public
Capitalism in space: A merger with a major investment capital company, bringing in $500 million, will result in the smallsat rocket company Astra going public.
Small launch vehicle developer Astra will go public by merging with a special-purpose acquisition company (SPAC), providing the company with nearly $500 million in cash and valuing it at more than $2 billion.
Astra announced Feb. 2 an agreement to merge with Holicity, a SPAC established last year by Craig McCaw. That merger, expected to close in the second quarter, will turn Astra into a publicly traded company on the Nasdaq exchange with the ticker symbol ASTR. McCaw, chairman and chief executive of Holicity, will join Astra’s board as part of the deal.
Astra expects to raise $489 million through the merger with Holicity, a total that includes a $200 million private investment in public equity (PIPE) led by BlackRock and $30 million from a concurrent Series C round, company executives said in an investor call. The deal will value Astra at $2.1 billion.
In the article Astra’s head claimed the company already has contracts for its first fifty flights, but did not provide any details. At this moment Astra has yet to complete a successful orbital launch, and has two attempted orbital tests which both failed.
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Capitalism in space: A merger with a major investment capital company, bringing in $500 million, will result in the smallsat rocket company Astra going public.
Small launch vehicle developer Astra will go public by merging with a special-purpose acquisition company (SPAC), providing the company with nearly $500 million in cash and valuing it at more than $2 billion.
Astra announced Feb. 2 an agreement to merge with Holicity, a SPAC established last year by Craig McCaw. That merger, expected to close in the second quarter, will turn Astra into a publicly traded company on the Nasdaq exchange with the ticker symbol ASTR. McCaw, chairman and chief executive of Holicity, will join Astra’s board as part of the deal.
Astra expects to raise $489 million through the merger with Holicity, a total that includes a $200 million private investment in public equity (PIPE) led by BlackRock and $30 million from a concurrent Series C round, company executives said in an investor call. The deal will value Astra at $2.1 billion.
In the article Astra’s head claimed the company already has contracts for its first fifty flights, but did not provide any details. At this moment Astra has yet to complete a successful orbital launch, and has two attempted orbital tests which both failed.
Readers!
My annual February birthday fund-raising drive for Behind the Black is now over. Thank you to everyone who donated or subscribed. While not a record-setter, the donations were more than sufficient and slightly above average.
As I have said many times before, I can’t express what it means to me to get such support, especially as no one is required to pay anything to read my work. Thank you all again!
For those readers who like my work here at Behind the Black and haven't contributed so far, please consider donating or subscribing. My analysis of space, politics, and culture, taken from the perspective of an historian, is almost always on the money and ahead of the game. For example, in 2020 I correctly predicted that the COVID panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Every one of those 2020 conclusions has turned out right.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
You can support me either by giving a one-time contribution or a regular subscription. There are four ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
3. A Paypal Donation or subscription:
4. Donate by check, payable to Robert Zimmerman and mailed to
Behind The Black
c/o Robert Zimmerman
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Cortaro, AZ 85652
You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above.
they lost me at Blackrock. I’m going to call a bubble.
related:
“Chamath Palihapitiya’s SPAC ‘Social Capital Hedosophia Holdings’ bought a 49% stake in Virgin Galactic for $800 million before listing the company in 2019.
The Big Short (2015)
Scion Capital cashes out
https://youtu.be/ktGarjZC8E8
“Looks like the collapse of the financial sector is imminent. Let’s start to sell my position. It’s $1.3 billion. Sure, I’ll hold.”
Dr. Michael Burry
Holicity files for IPO
July 2020
https://www.nasdaq.com/articles/tmt-spac-holicity-files-for-a-%24250-million-ipo-2020-07-17
-25 million units at $10 each; consisting of 1 Share + 1/3 of a Warrant, exercisable at $11.50
….then, it gets interesting…..
SPACs: Shares vs Warrants vs Units
-how trading strategies work-
Patrick Desjardins 2020
https://youtu.be/1Y8AzV7Exo4
22:30
– Units, Shares, and Warrants, all carry different risk profiles…..
From the article: “In an investor presentation filed with the Securities and Exchange Commission, the company projects launching 300 times in 2025, a total nearly three times the number of orbital launches performed worldwide in 2020.”
Although 300 smallsat launches seems like a lot, SpaceX recently launched around 150 smallsats on one launch. There is no lack of smallsats that need launching.
Some say that SpaceX is drawing customers away from the small launch companies with its dedicated rideshare Transporter missions, but since there are not yet enough small launchers for the current market, this is not the case. Indeed, it could be the other way around, that the smallsat launchers will be better able to target individual companies’s needs than SpaceX can.