Rocket Lab Spurs a Major Rally in the SPAC Vector Acquisition Corp. (VACQ) Shares as the Launch Window for the Space Mission “They Go up So Fast” Approaches

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Rocket Lab, an aerospace company that specializes in manufacturing small satellites, has spurred a major rally in shares of the SPAC Vector Acquisition Corp. (NASDAQ:VACQ) on the imminent launch of its 19th Electron mission.

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As per the details, the mission – dubbed “They Go Up So Fast” – will “deploy a range of satellites for commercial and government satellite operators, as well as place a next-generation Rocket Lab Photon spacecraft in orbit to build spacecraft heritage ahead of Rocket Lab’s mission to the Moon for NASA later this year”. As a refresher, Rocket Lab’s Electron rocket is the 2nd most popular launch vehicle in the US and the 4th most popular globally. The rocket is constructed from carbon composites and utilizes 3D-printed engines. Crucially, the Electron is the “only reusable orbital-class small rocket”, with the first re-flight of a full booster scheduled for 2022.

Rocket Lab has also introduced its Satellite-as-a-Service facility, dubbed the Photon. The service allows customers to purchase an entire satellite as well as its ground services, launch, and in-orbit management. In the same vein, Rocket Lab is also looking to offer a Spacecraft-as-a-Service facility via the Photon Interplanetary program. The program seeks to deliver Photon capsules to anywhere in the solar system by launching them on Electron rockets. The company’s first mission to the Moon is scheduled for later in 2021 under the auspices of NASA’s Artemis program. A mission to Venus is scheduled for 2023 and to Mars for 2024. Rocket Lab is also planning to launch its next-gen rocket, dubbed Neutron, by 2024. The rocket is being billed as a direct competitor to SpaceX’s Falcon 9. The Neutron will support human spaceflights as well as ISS resupply missions.

Readers can watch the launch event live here:

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Rocket Lab and the SPAC Vector Acquisition are slated to merge in Q2 2021. the merger agreement values Rocket Lab at an implied pro forma enterprise value of $4.1 billion. At the close of this transaction, the combined company is expected to have access to $750 million in cash, including $470 million in PIPE investments from the likes of BlackRock, Neuberger Berman, etc. Once the merger agreement closes, the shares of the combined company will start trading on the NASDAQ under the ticker symbol RKLB. As far as Rocket Lab’s finances are concerned, the company expects to earn $69 million in revenue in 2021. By 2027, this metric is expected to swell to over $1.5 billion. The company expects to become EBITDA positive by 2023 and Free Cash Flow positive by 2024.

The author has no position in any of the stocks mentioned. NewAgeAds LLC has a disclosure and ethics policy.
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