Rood was an executive at Lockheed Martin and Raytheon who served as undersecretary of defense for policy from 2018 to 2020. Momentus announced July 14 it hired John Rood as its new chief executive, effective Aug. The companies are pressing ahead with the merger and are taking steps to put those national security issues behind them. The settlement included $7 million in penalties against Momentus and $1 million against Stable Road. The SEC settlement that gave PIPE investors an opportunity to drop out resulted from allegations that Momentus made false claims about the maturity of its technology and national security issues about its Russian co-founder and former chief executive, Mikhail Kokorich, as well as the failure of Stable Road to do proper due diligence. Those investors will also receive warrants to purchase an equal amount of Momentus stock at a later date. That brought the total to $110 million, or a little less than two-thirds of the original PIPE round. Six new investors, also unidentified in the filing, joined the PIPE, adding $47.75 million to the round. ![]() Stable Road said that investors who decided to stay in the PIPE altered their agreements to create a net gain of $5.3 million. The filing did not state which investors decided to drop out of the deal. In its July 16 SEC filing, Stable Road said investors who accounted for $118 million of the $175 million raised in the PIPE round terminated their agreements. ![]() In the case of the Momentus deal, $172.5 million was coming from the proceeds of Stable Road, while $175 million would come from the PIPE round. When Stable Road announced the merger with Momentus in October 2020, the deal included a concurrent PIPE round, which is common in SPAC mergers to increase the amount of capital raised beyond the proceeds of the SPAC itself. In a July 16 filing with the SEC, Stable Road Acquisition Corporation, the SPAC that is merging with Momentus, said that it complied with the terms of a settlement with the SEC announced July 13, offering investors who participated in a private investment in public equity (PIPE) funding round the ability to drop out without penalty. EL PASO, Texas - Investors accounting for more than half the money in a funding round concurrent with in-space transportation company Momentus’s merger with a special-purpose acquisition company (SPAC) dropped out of the deal when given the opportunity by a settlement with the Securities and Exchange Commission.
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