Latest news with #BPGCAcquisition
Yahoo
6 days ago
- Business
- Yahoo
A troubled SPAC plans to buy iRocket for $400M but it already returned most of its cash
An unproven small launch startup is partnering with a severely depleted SPAC trust to do the impossible: go public in a deal they say will be valued at $400 million. Innovative Rocket Technologies Inc. (iRocket) and BPGC Acquisition Corp., a special purpose vehicle company founded by former Commerce Secretary Wilbur Ross, is aiming to close the transaction in the fourth quarter of this year. Interestingly, the SPAC has been depleted of most of its cash after it raised $345 million in its IPO in March 2021. According to a September 2024 filing with the U.S. Securities and Exchange Commission, the SPAC had returned much of its money to shareholders when it failed to find an acquisition target by September 2024 and held $30.5 million in trust. However, just 16 days later, the company reported in an 8-K that another $28.8 million had been redeemed — leaving the trust as of that date with just 0.5% of its original amount, or $1.6 million. The remaining shareholders (primarily the SPAC's sponsors) agreed at that time to extend the date to find an acquisition target to March 2026. The startup, iRocket, was at one time buzzy because it was backed by venture capital firm Village Global, which counts billionaires like Bill Gates, Eric Schmidt, and Reid Hoffman among its limited partners. Even still, iRocket is a surprising target for a take-public deal. The company has raised only a few million in venture funding, according to PitchBook, in an industry that is known for being extremely capital intensive. Since its founding in 2018, it has yet to conduct a single test flight of its Shockwave launch vehicle. In that time, it has been overtaken by other firms, like Stoke Space and Firefly, that are better capitalized and farther along in their hardware development. The market has changed, too: As of 2023, iRocket described Shockwave as being able to carry 300 kg to 1,500 kg payloads, and that space has become crowded with vehicles like Firefly's Alpha and Rocket Lab's Electron, both of which have flown customer payloads. If iRocket can prove out the rest of its value proposition — full reusability, rapid refurbishment, and 24-hour responsiveness — it could prove very competitive, but that's a tough series of goals. The New York-based startup lists just four employees, excluding board members, on LinkedIn. Its contracts include an $18 million deal with the Air Force Research Lab and a $1.8 million contract with the Space Force. A PR firm representing iRocket and the SPAC declined to respond to TechCrunch's questions. The special purpose acquisition vehicle has a checkered past. Operating under the name Ross Acquisition Corp II, it tried to take public biopharma company Aprinoia Therapeutics in January 2023 but terminated the deal eight months later. After failing to consummate a transaction, the NYSE subsequently commenced delisting proceedings against the SPAC last March. RAC II changed its name to BPGC Acquisition Corp. and now has until March 2026 to close a deal. But given the SPAC's current cash reserves, if iRocket's existing shareholders expect to be paid much cash for their equity, the two parties will need to pull in a big chunk of money from private equity investors in a PIPE (private investment in public equity) round. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
TechCrunch
6 days ago
- Business
- TechCrunch
A troubled SPAC plans to buy iRocket for $400M but it already returned most of its cash
An unproven small launch startup is partnering with a severely depleted SPAC trust to do the impossible: go public in a deal they say will be valued at $400 million. Innovative Rocket Technologies Inc. (iRocket) and BPGC Acquisition Corp., a special purpose vehicle company founded by former Commerce Secretary Wilbur Ross, is aiming to close the transaction in the fourth quarter of this year. Interestingly, the SPAC has been depleted of most of its cash after it raised $345 million in its IPO in March 2021. According to a September 2024 filing with the U.S. Securities and Exchange Commission, the SPAC had returned much of its money to shareholders when it failed to find an acquisition target by September, 2024, and held $30.5 million in trust. However, just sixteen days later, the company reported in an 8-K that another $28.8 million had been redeemed – leaving the trust as of that date with just 0.5% of its original amount, or $1.6 million. The remaining shareholders (primarily the SPAC's sponsors) agreed at that time to extend the date to find an acquisition target to March, 2026. The startup, iRocket, was at one time buzzy because it was backed by venture capital firm Village Global which counts billionaires like Bill Gates, Eric Schmidt, and Reid Hoffman among its limited partners. Even still, iRocket is a surprising target for a take-public deal. The company has raised only a few million in venture funding, according to Pitchbook, in an industry that is known for being extremely capital intensive. Since its founding in 2018, it has yet to conduct a single test flight of its Shockwave launch vehicle. In that time, it has been overtaken by other firms, like Stoke Space and Firefly, that are better capitalized and farther along in their hardware development. The market has changed, too: as of 2023, iRocket described Shockwave as being able to carry 300-1,500 kilogram payloads, and that space has become crowded with vehicles like Firefly's Alpha and Rocket Lab's Electron, both of which have flown customer payloads. If iRocket can prove out the rest of its value proposition – full reusability, rapid refurbishment, and 24-hour responsiveness – it could prove very competitive, but that's a tough series of goals. Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | REGISTER NOW The New York-based startup lists just four employees, excluding board members, on LinkedIn. Its contracts include an $18 million deal with the Air Force Research Lab and a $1.8 million contract with the Space Force. A PR firm representing iRocket and the SPAC declined to respond to TechCrunch's questions. The special purpose acquisition vehicle has a checkered past. Operating under the name Ross Acquisition Corp II, it tried to take public biopharma company Aprinoia Therapeutics in January 2023 but terminated the deal eight months later. After failing to consummate a transaction, the NYSE subsequently commenced delisting proceedings against the SPAC last March. RAC II changed its name to BPGC Acquisition Corp. and now has until March 2026 to close a deal. But given the SPAC's current cash reserves, if iRocket's existing shareholders expect to be paid much cash for their equity, the two parties will need to pull in a big chunk of money from private equity investors in a so-called PIPE round (private investment in public equity).
CNA
6 days ago
- Business
- CNA
Space startup iRocket to go public via $400 million SPAC deal
Reusable rocket developer Innovative Rocket Technologies, commonly known as iRocket, will go public in the U.S. through a $400 million merger with special purpose acquisition company BPGC Acquisition, the companies said on Wednesday. SPAC deals, which took a backseat following a boom in 2020-2021, have seen a resurgence this year as macroeconomic uncertainties led by President Donald Trump's tariff policies continue to temper dealmaking. Crypto firm Bitcoin Standard Treasury Company, with over 30,000 bitcoin on its balance sheet, said it was aiming to list on Nasdaq through a merger with a Cantor Fitzgerald-backed blank check firm. SPACs are being increasingly viewed as a viable alternative to the traditional initial public offerings, which remained subdued through the tariff saga. However, progress in trade talks has rejuvenated investor interest in fresh listings. The company, founded in 2018, specializes in liquid oxygen and methane-fueled rocket propulsion technology, which encompasses a quick turnaround time to reload and relaunch, through its patented engine design. Space startups have also seen a lot of interest from investors and venture capital firms, with the World Economic Forum predicting a $1.8 trillion space economy by 2035. The company also noted the same number, citing a report by McKinsey, indicating it as a major opportunity for the rocket developer. "iRocket's unique combination of proven engineering talent, reusable launch systems, and solid rocket motor capability positions the Company to capture a significant share of the global launch and propulsion market," said Wilbur Ross, the 39th U.S. Secretary of Commerce and a sponsor of BPGC. The transaction, on which Cohen & Company Capital Markets advised iRocket financially, is expected to be completed in the fourth quarter of 2025. The companies intend to list the merged entity on Nasdaq.
