SPAC Deep Space Files for $210 Million IPO
At the proposed deal size, company would command a market value of $263 million.
Deep Space Acquisition I plans to offer 21 million units at $10 each. [Courtesy: NASA]
Deep Space Acquisition I, a Pennsylvania-based blank check company targeting space technology, has filed for a $210 million initial public offering.
In documents filed Tuesday with the Securities and Exchange Commission, the company states: “We are seeking a target company that can use the unique materials, hardware, software, and expertise involved in space-related activity to produce near-term revenue streams in terrestrial markets while maintaining a long-term focus on unlocking the value of space.”
The company plans to offer 21 million units at $10, according to the documents. Each unit consists of:
- One share of Class A common stock
- One-half of one redeemable warrant
- One right to receive one-sixteenth of one share share of common stock
It plans to list on the Nasdaq as “DPACU.”
At the proposed deal size, Deep Space Acquisition I would command a market value of $263 million, according to Renaissance Capital.
The company says it has not identified a potential target, adding, “While we will consider target companies in any sector, we will focus our attention on space technology, space-related applications, and the integration of space into terrestrial (Earth-based) market sectors that are poised to experience rapid growth.”
The company is led by CEO and director Jose Ocasio-Christian, CEO of Caelus Partners and Community in Space; CFO Linda Maxwell, a consultant with M.B. Associates LLC; and COO and CCO Robert Tull, president and COO of Procure Holdings.
Nomura Securities is the sole bookrunning manager.
SPACs in Space
The announcement comes just days before Richard Branson-backed Virgin Orbit, which provides launch services for small satellites, is expected to merge Tuesday with special purpose acquisition company (SPAC) NextGen Acquisition Corp. II (NASDAQ:NGCA). The deal is valued at $3.2 billion, according to the company.
Virgin Orbit joins a growing trend of space organizations that are seeking to go public via SPAC deals. SPACs have gained popularity as a way for companies to secure funding by allowing them to offer stocks without going through the traditional, and cumbersome, process of becoming a publicly traded company. In 2019, Virgin Galactic (NYSE:SPACE) went public. Other space-related companies that have closed SPAC deals include Rocket Lab (NASDAQ:RKLB), BlackSky (NYSE:BKSY), Spire Global (NYSE:SPIR), and Momentus (NASDAQ:MNTS).
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