Another Space Stock Is Coming
The space economy is heating up, and investors have another way to play the growing industry.
Today, space infrastructure company Redwire announced plans to become a publicly traded company by merging with special purpose acquisition company Genesis Park Acquisition (ticker: GNPK).
Genesis Park stock rose almost 4% in premarket trading. S&P 500 and Dow Jones Industrial Average futures, for comparison, are both down slightly.
Redwire’s SPAC merger follows similar announcements from Astra, Rocket Lab USA, BlackSky, AST & Science, and Spire Global.
Redwire, however, is a little different from those firms. The space infrastructure company doesn’t launch things into space like Rocket Lab and Astra, or operate a constellation of hundreds of satellites beaming information down to earth like BlackSky, Spire, and AST. Instead, Redwire makes communication antennas and navigation controls for satellites, launch adapters to ready satellites for their trip into orbit, as well as many other products, including solar arrays.
The SPAC merger deal will bring $170 million into company coffers and values Redwire stock at $680 million, based on the 68 million shares outstanding when the Genesis Park merger wraps up. In comparison, Rocket Lab and Astra have market capitalizations of about $5.1 billion and $3.1 billion, respectively. AST, Spire, and BlackSky market capitalizations are roughly $2.2 billion, $1.6 billion and $1.5 billion, respectively.