Rocket startup Astra to go public via SPAC at $2.1 billion valuation
Last week, it was the electric-vehicle startup Faraday Future. This week, another tech startup is joining the SPAC craze. Astra, a San Francisco, California-based rocket launch startup that provides satellite delivery service and launch service, announced Tuesday it is going public through a deal with blank-check company Holicity Inc. The SPAC IPO will value the company at a valuation of $2.1 billion.
In an issued statement, Astra said its existing shareholders will own about 78% of the common stock of the combined company, the statement said. The deal with Holicity is expected to fetch up to $500 million in cash proceeds. This includes a $200 million private investment led by funds and accounts managed by BlackRock Inc, the statement added.
In a message on its website, Astra CEO said:
“Astra is becoming a publicly-traded company to accelerate our journey to make low Earth orbit the next frontier for human innovation. Enabling a new generation of space services with frequent, reliable, and affordable launches, together we’re going to make life better here on Earth.”
A blank-check company sometimes called a special purpose acquisition company (SPAC), is a shell company that has no operations but plans to go public with the intention of acquiring or merging with a company utilizing the proceeds of the SPAC’s initial public offering (IPO).