- SPAC Stable Road is merging with space cargo company Momentus.
- The deal has been marred by misstatements by Momentus' former chief executive officer, a delayed launch schedule, and significantly reduced financial projections.
- A resulting cut in the implied enterprise value of Momentus might seem to offset those worries, and indeed SRAC stock has held modestly above $10.
- But the cheaper price doesn't seem like enough: Momentus has very real problems and very real questions about its viability.
- With many weaker SPACs recently falling after deal close, Stable Road stock looks like an avoid even with the lower valuation and a cheaper stock price.
For further details see:
Stable Road Acquisition: A Cheaper Mess Is Still A Mess