MYNAY - Rocket Lab Ends Mynaric's Suffering

2025-03-24 06:14:32 ET

Summary

• Mynaric's failure to commercialize its technology and match equity raises with its go-to-market timeline led to shareholder dilution and debt, resulting in restructuring.
• Rocket Lab's acquisition of MYNAY for $75 million protects its contracts and adds the OCT product and customer base, strengthening its end-to-end space company position.
• Mynaric shareholders will be wiped out as the company delists, while Rocket Lab benefits from better funding to ramp up production and capitalize on the CONDOR Mk3 terminal.
• I maintain a strong buy rating for RKLB due to its expanding product portfolio and strategic positioning, despite the stock price drop from its highs.

I covered Mynaric in ( OTC:MYNAY , OTCPK:MOYFF ) in November 2023 with a hold rating. In my view, the company was a very high risk speculative buy and a potential acquisition target. Rocket Lab ( RKLB ) recently announced that it intends to acquire the company. The acquisition, however, happens as part of a restructuring. So, there is no real value here for Mynaric shareholders....

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