It is the worst of times for launch providers Virgin Orbit and Astra Space, whose futures could be decided in the next week. And two satellite operators — Momentus and Spire Global — have received delisting warnings from their respective stock exchanges. On that dour note, let’s dive right into this week’s S-SPACi.
A Tale of Two Launch Providers
Richard Branson’s Virgin Orbit (NAS: VORB) is desperately trying to find funding to avoid bankruptcy after negotiations with two potential suitors broke down over the last week, according to press reports.
CEO Dan Hart described ongoing negotiations with other potential investors as “very dynamic” in an email that leaked on Monday. What that actually means is unclear. Hart had planned to give employees an update on Monday, but that has been postponed to no later than Thursday.
Almost all staff members remain on unpaid furloughs that began on March 15. Press reports say the cash-strapped company has been preparing alternative plans for bankruptcy.
Branson has loaned the company $60 million through Virgin Investments Ltd (VIL) since November. The funding came with the provision that VIL would possess virtually all the company’s assets in the event of a default.
Virgin Orbit’s stock closed down more than 28% to hit an all-time low of $0.38 on Tuesday.
Astra Space Faces Delisting Decision
Launch provider Astra Space (NAS: ASTR) faces delisting on April 5 if it doesn’t get a 180-day extension from NASDAQ. Last October, the exchange gave the company six months to get its average closing share price to at least $1 over a 30 trading-day period. The stock closed today at $0.42 on Tuesday.
Astra could raise the stock price through a reverse stock split. Investor.gov describes the move as follows:
When a company completes a reverse stock split, each outstanding share of the company is converted into a fraction of a share. For example, if a company declares a one for ten reverse stock split, every ten shares that you own will be converted into a single share. If you owned 10,000 shares of the company before the reverse stock split, you will own a total of 1,000 shares after the reverse stock split.
Astra’s Rocket 3 series of low-cost, small-satellite boosters proved to be so unreliable that the company abandoned it last year. It is currently developing a larger Rocket 4 booster.
Astra has expanded beyond launches to producing engines for satellites. In October, the company reported 200 cumulative orders for its Astra Spacecraft Engines.
Astra is set to report fourth quarter and full year earnings on Thursday.
Space SPAC Index
March 28, 2023
| Company | First Trading Day | Opening Share Price | High | Closing Price |
|---|---|---|---|---|
| Arqit (NAS: ARQQ) | Sept. 7, 2021 | $9.25 | $41.52 (9/23/21) | $1.17 |
| Astra Space (NAS: ASTR) | July 1, 2021 | $12.30 | $16.95 (7/2/21) | $0.42 |
| AST SpaceMobile (NAS: ASTS) | April 7, 2021 | $11.63 | $15.48 (6/30/21) | $5.62 |
| BigBear.ai (NYS: BBAI) | Dec. 8, 2021 | $9.84 | $16.12 (4/6/22) | $1.88 |
| BlackSky (NYS: BKSY) | Sept. 10, 2021 | $11.80 | $13.20 (9/16/21) | $1.37 |
| Intuitive Machines (NAS: LUNR) | Feb. 14, 2023 | $10.00 | $10.58 (2/14/23) | $10.44 |
| Momentus (NAS: MNTS) | Aug. 13, 2021 | $10.85 | 12.87 (9/7/21) | $0.54 |
| Planet Labs (NYS: PL) | Dec. 8, 2021 | $11.25 | $11.65 (12/8/21) | $3.41 |
| Redwire (NYS: RDW) | Sept. 3, 2021 | $10.70 | $16.98 (10/25/21) | $2.65 |
| Rocket Lab (NAS: RKLB) | Aug. 25, 2021 | $11.58 | $21.34 (9/9/21) | $3.89 |
| Satellogic (NAS: SATL) | Jan. 26, 2022 | $9.19 | $10.92 (5/4/22) | $2.29 |
| Satixfy (NYS: SATX) | Oct. 28, 2022 | $8.29 | $51.70 (11/17/22) |
$0.91 |
| Spire (NYS: SPIR) | Aug. 17, 2021 | $10.25 | $19.50 (9/22/21) | $0.65 |
| Terran Orbital (NYS: LLAP) | March 28, 2022 | $12.69 | $12.69 (3/28/22) | $1.55 |
| Virgin Galactic (NYS: SPCE) | Oct. 28, 2019 | $11.79 | $62.80 (2/4/21) | $3.90 |
| Virgin Orbit (NAS: VORB) | Dec. 30, 2021 | $8.525 | $11.28 (1/11/22) | $0.38 |
Delisting List Grows Longer
Momentus Space (NAS: MNTS) and Spire Global (NYS: SPIR) each received delisting warnings last week from Nasdaq and The New York Stock Exchange, respectively. Momentus has until September 18 to raise its stock price, while Spire Global’s deadline falls four days later. Both companies can appeal for an additional 180 calendar days if necessary.
Momentus Space provides in-space transportation and hosting services for small satellites and payloads. The company narrowed its net loss from $120.7 million in 2021 to $95.4 million last year. However, revenue for the year was only $299,000.
Momentus stock closed down 4% at $0.54 on Tuesday.
Spire Global operates a fleet of nanosatellites that provide weather forecasting and analytics and track maritime and aviation traffic. The company’s fourth quarter 2022 revenue was up 49.4% to $22.39 million, while full-year revenue increased by 85.1% to $80.27 million. Spire’s net loss last year more than doubled from $38.1 million to $89.4 million, an increase of 134.7%.
Spire’s stock closed down 6.1% at $0.65 on Tuesday.
BlackSky Satellites Generate Revenue in 18 Hours
BlackSky (NYS: BKSY) reports that its BlackSky 18 and 19 Earth observation satellites began revenue-generating operations within 18 hours of being launched from New Zealand aboard a Rocket Lab Electron rocket on March 24.
Satellites go through a commissioning process during which their systems are activated and instruments calibrated. The process took less than a day in this case.
“BlackSky has more than doubled our on-orbit capacity in the last 18 months, with enough capacity to support growth over the next two years,” said CEO Nick Merski, BlackSky chief operating officer. “Our flexible architecture gives us the ability to realize incremental benefits quickly as we add ever-advancing, multi-generational capability to our constellation.”
BlackSky closed down 2.85% at $1.37 on Tuesday.
There’s an App for That: Satellogic Partners with SkyFi
Satellogic Inc. (NAS: SATL) announced a partnership that will allow SkyFi customers to task Satellogic’s 30 Earth observation satellites directly through through SkyFi’s app or at https://app.skyfi.com.
“SkyFi and Satellogic are both committed to democratizing access to Earth Observation data,” said Satellogic CEO and Co-founder Emiliano Kargieman. “This partnership expands the availability of affordable, high-resolution satellite images and enables customers to task their specific points of interest through a seamless app. It’s a strategic step forward in helping to increase the adoption of Earth Observation across existing and emerging markets.”
Satellogic’s high-resolution satellites deliver sub-meter Earth observation data for critical analysis of climate change, energy supplies, food security and other vital issues.
Satellogic’s stock closed up 4% at $2.29 on Tuesday.
