A reckoning for Spacs: will regulators deflate the boom?

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At the beginning of this year, the space transportation start-up Momentus thought it would be well on its way towards its stated mission of “revolutionising space infrastructure and the space economy”. Instead, regulators intervened.

Three months after Momentus announced a $1.2bn merger with a special purpose acquisition company, Stable Road Acquisition Corp, the Securities and Exchange Commission told the companies they were under investigation for statements made about the transaction, according to filings made public last month.

The merger, which would make Momentus one of the few publicly traded space companies, had been billed in October as a “unique and compelling opportunity” for investors. Momentus projected it would reach more than $4bn in revenues in 2027, including almost $670m in sales from a fleet of robotic vehicles designed to serve large spacecraft.

Those plans are on hold. Because of the ongoing investigation, the SEC has yet…

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