Stock in Rocket Lab should have an interesting week. There is a lot of news, most of it positive.
Friday, shareholders of the special-purpose acquisition company Vector Acquisition (ticker: VACQ) approved the SPAC’s merger with Rocket Lab, clearing the way for the space company to become publicly traded. Shares of the SPAC jumped about 5%, after the positive vote removed the small risk that Vector investors would vote down the deal.
On Wednesday,Vector Acquisition‘s stock symbol VACQ will change to RKLB and the company name will become Rocket Lab USA. The merger, which closed Friday, will bring about $775 million into Rocket Lab’s coffers, money that management can use to build up the space businesses.
On Monday, Rocket Lab announced that NASA approved the ESCAPADE small satellite interplanetary mission. That means Rocket Lab is going to Mars.
ESCAPADE consists of two Photon spacecraft, developed and built by Rocket Lab. Photon is about the size of a mini-fridge and weighs about 250 pounds, according to NASA.
“This is a hugely promising mission that will deliver big science in a small package,” said Rocket Lab CEO Peter Beck in a news release. “Our Photon spacecraft for ESCAPADE will demonstrate a more cost-effective approach to planetary exploration that will increase the science community’s access to our solar system for the better.”
The NASA approval starts the final stages of designing and building the Photon.
It’s a nice win for the company. The mission is still years away, however. Vector stock was up 0.5% in premarket trading Monday.S&P 500 and Dow Jones Industrial Average futures were up 0.3% and 0.5%, respectively.
Vector stock is up about 2% since just before the SPAC announced the merger with Rocket Lab on March 1. Its shares jumped 36% the day the merger was announced, hitting $13.95, only to give up much of that gain. Shares were at about $10.55 in premarket trading Monday.
Barron’s recently wrote positively about Rocket Lab, saying it was the best bet for investors looking for exposure to the growingcommercial space business. That article appeared when Vector stock was trading for $11.60.
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