Space SPACs News: What to Know About GNPK Stock and the Redwire Merger

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You can’t spell “space” without “S-P-A-C.” And in 2021, it seems like you can’t have a space business without a special purpose acquisition company to bring it public. The newest space SPAC merger is a deal between space company Redwire and Genesis Park Acquisition (NYSE:GNPK).

Person looking through space capsule's cabin window into space.

Source: Shutterstock

There have been a string of space SPACs throughout the year, like New Providence Acquisition (NASDAQ:NPA) and its planned merger with AST SpaceMobile, and Vector Acquisition’s (NASDAQ:VACQ) scheduled acquisition of Rocket Labs. Additionally, GNPK stock is seeing a boost of its own with the news of its planned merger with Redwire.

Redwire is a company that formed last year and is rather new to the game. Its business model is centered around the mergers and acquisitions of smaller space companies. It is a conglomerate of engineering firms, in-space manufacturing companies, and satellite development groups, among others.

The company prides itself on its vast capabilities within many niche sectors of the space industry. Genesis Park president Jonathan Baliff mentioned these capabilities when talking about the uniqueness of this particular space SPAC merger:

“Redwire has the unique combination of profitability and breakout organic growth, which sets us apart from SPAC peers in space and additive manufacturing.”

The Space SPAC News Is Good for Redwire and GNPK Stock

The deal is quite lucrative for Redwire, lining the company’s wallet with $170 million and setting it up to move forward with future mergers. Redwire CEO Peter Cannito says, “having that public equity [from the future IPO] as a currency significantly increases our attractiveness as an acquiring platform.”

All of this being said, GNPK stock is seeing a rise this morning. The stock has seen a roughly 3% gain today, continuing a great week for the SPAC.

This newest merger is showing investors that space companies are in high demand. More private companies are flying off the shelf and into the hands of space SPACs. It would be wise to keep a finger on the pulse of this exponentially growing industry.

On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.


Article printed from InvestorPlace Media, https://investorplace.com/2021/03/space-spacs-news-what-to-know-about-gnpk-stock-and-the-redwire-merger/.

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