Astra to become the first publicly traded Space Launch company via Merger with Holicity (HOL)


  • A new merger between Astra space launch company and Holocity (HOL) announced yesterday and moved the stock 57% up. The transaction will be completed during the second quarter under a new ticker ASTR.
  • Astra aims to reshape the space industry by providing more frequent but smaller launches to space in order to collect data to improve life on our planet.
  • Holicity is another SPAC that went public last year and managed to raise $275 million.
  • Other mergers in the sector are Momentus and Stable Road Acquisition (SRAC)

Transaction Overview

Yesterday on February 2, Astra a space-launch announced its merger with special purpose acquisition company (SPAC) Holocity (NASDAQ: HOL). Once the merger transaction is closed the company will be trading under a new ticker symbol “ASTR”. After the announcement, the stock price jumped 57% from $10.24 to $16.29. After-hours show an additional increase of 8% at $17.60.

holocity chart

As you can see in the image above, the SPAC Holocity (HOL) did not have much volume before the announcement of the merger. After that the volume started picking up and drove the price 57% up.

The transaction will be completed in the second quarter of 2021. The merger gives Astra a pro forma market capitalization of almost $2.1 billion, according to Barrons. This transaction will provide up to $500 million in proceeds along with an additional $300 million cash held in the trust account of Holocity. Furthermore, the PIPE funds and accounts managed by BlackRock (NYSE: BLK) with an upsized $200 million will be provided. Existing shareholders in Astra will hold approximately 78% of the outstanding common shares of the stock immediately after the transaction, with no redemptions from Holocity’s existing public shareholders.

Astra CEO and founder Chris Kemp said “This transaction takes us a step closer to our mission of improving life on Earth from space by fully funding our plan to provide daily access to low Earth orbit from anywhere on the planet”.

About Astra

Astra was founded in October 2016 and incorporated in Delaware by Chris Kemp and Adam London by hiring Adam’s engineers to deliver daily access to space.

In 2017, they built Rocket Development and Test Facility in Alameda, CA.

In July 2018, the company launched its first Rocket 1.0 and few months after in November it successfully launched the Rocket 2.0 also in Kodiak, Alaska.

In 2019, the company was selected out of 60 space companies to compete in the DAPRA Launch Challenge. As the last finalist, the company built its first Rocket 3 variant and activated its launch site.

In September 2020, Astra completed its first-ever orbital launch demonstration of Rocket 3.1 and gained valuable flight data. In December Rocket 3.2 made it to space and achieved orbital velocity.

The company’s main focus is to reshape the space industry by offering more frequent but smaller launches. By doing so Astra will be able to achieve a wave of innovation in low Earth orbit and improve life on Earth.

In December 2020, Astra joined a small elite group of companies that have also made it to space with over 50 launches and 10 private and public customers including NASA. Astra has booked over $150 million of contracted launch revenue and will begin delivering customer payloads in the summer. The monthly launches will begin by the end of the year.

About Holocity

Holicity Inc. is a special purpose acquisition company (SPAC) sponsored by Pendrell Holicity Holdings Corporation, a subsidiary of Pendrell Corporation. It is a permanent capital vehicle with Mr. Craig O. McCaw as the shareholder in control. Craig McCaw is expected to join Astra’s board of Directors. The company raised $275million when it went public last year. SPACs have started in the 90s, but they are now more popular than ever since companies find it less risky, cheaper and more efficient to go public via mergers.

Other Space Companies

Virgin Galactic (NYSE: SPCE) the space tourism pioneer has achieved a $12 billion market cap in the last few days following a rise of approximately 40%. The investments in space companies have been growing and only last year the amount invested in the sector was $9 billion.

Space logistics provider Momentus is merging with Stable Road Acquisition (SRAC) giving a market cap of $3.4 billion based on 151 million shares outstanding.

Read more on space exploration here about Virgin Galactic (NYSE: SPCE) and Maxar Technologies (NYSE: MAXR).

Final Note

Astra appears to be very positive for what is about to come and ever more for new applications. By 2025 the company aims to have daily orbital launches. The revenue is forecasted to reach $1.5 billion during that year with a free cash flow of approximately $700 million.

Disclaimer – I/we have no position in any stock mentioned. I wrote this article myself, and it expresses my personal opinions. I am not receiving any compensation for it, other than FDGT Academy. I do not have or had in the past any business relationship with any company that is mentioned in the above article.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.