Vector Acquisition (NASDAQ:VACQ) stock is on the rise Monday after the special purpose acquisition company (SPAC) announced plans for a merger with Rocket Labs.
Here’s everything potential investors in VACQ stock need to know about the companies and the deal.
- Vector Acquisition is a blank-check company created with the goal of taking a private company public via a SPAC merger.
- It has the financial support of Vector Capital.
- The company’s CEO is tech investor Alex Slusky.
- Slusky also serves as the founder and chief investment officer of Vector Capital.
- Rocket Labs is a company that specializes in launch and space system services.
- It works with private and public organizations to launch satellites into orbit.
- As of this writing, the company has placed 97 satellites in orbit.
- The Rocket Labs SPAC merger values the company at $4.1 billion.
- When the deal closes, the new company will operate under the name Rocket Lab USA, Inc..
- This will also see shares of VACQ stock change over to the new RKLB stock ticker.
- The new company will have roughly $750 million in cash on its balance sheet.
- That comes from cash currently held by Rocket Labs, $320 million held in trust by Vector Acquisition, and $470 million from private investment in public equity (PIPE).
- Vector Acquisition and Rocket Labs are expecting the SPAC merger to close in the second quarter of 2021.
VACQ stock was up 27.9% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.