Space

Edward Horowitz, a veteran of the satellite industry, is the brains behind the new space-focused SPAC

Summary

CEA Space Partners I Corp, a blank check corporation headed by satellite sector veteran Edward Horowitz, is preparing a public equity sale to collect $250 million to purchase a space company. The venture equity fund Navigation Capital and investment bank […]

CEA Space Partners I Corp, a blank check corporation headed by satellite sector veteran Edward Horowitz, is preparing a public equity sale to collect $250 million to purchase a space company. The venture equity fund Navigation Capital and investment bank CEA Group have backed the special-purpose acquisition business (SPAC), which is part of a rising space industry development.

A series of transactions concerning special-purpose acquisition corporations (SPACs) has piqued the space industry’s attention in recent months. It’s also caused several people to question what precisely a SPAC is. SPACs are a different route for corporations to go public. They’re often referred to as “blank check firms,” which is a fitting term. A SPAC is established and listed on the stock exchange in a conventional initial public offering (IPO). The profits of the IPO are used to combine the SPAC with a private corporation, enabling it to go public without needing to go through the long IPO phase. A SPAC usually has two years to close a transaction or refund the proceeds to its owners.

SPACs are not a recent concept; they’ve been around since the 1990s. Virgin Galactic was not the first space corporation to go public with a SPAC: Iridium went public through a SPAC merger in 2009. SPACs, on the other hand, have risen in prominence in recent months as a result of the speed and predictability they provided businesses in volatile markets. As per SPACInsider, a website that monitors SPAC operation, there have been 246 SPAC IPOs so far in the year 2021, almost the same amount as there were in all of 2020. There’s also a spike in “celebrity SPACs,” including supporters varying from former House Speaker Paul Ryan to former baseball player Alex Rodriguez.

They also decided to offer capital and other services to CEA Space Partners I Corp to help hunt for a possible acquisition. “While we may seek acquisition opportunities in any market or sector,” the SPAC reported in an SEC filing, “we plan to concentrate our quest on firms within the space economy as well as adjacent verticals with enterprise values of a minimum of $1 billion.”

Satellite devices and parts, satellite networking systems, earth observation technologies, satellite launch technology, data processing software and analytics, space logistics, robots, and related services are all examples of this. Navigation Capital has invested in Holicity, Inc., a satellite launch startup that declared a partnership with Astra in February.

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