Running a rocket launch company is an expensive proposition, as Ars Technica reports. You need hundreds of employees, lots of expensive machines and tooling, plenty of hardware, and at least one launch site. To make matters worse, for a purely commercial launch firm like Rocket Lab, you typically only get paid when you deliver someone’s satellite into orbit.
So it is perhaps no surprise that the US-based company, which launches from New Zealand and has about 600 employees, has been losing a lot of money. According to a new proxy statement, Rocket Lab experienced net losses of $30 million and $55 million in 2019 and 2020, respectively. Given the company’s financial position, an independent auditor, according to the proxy statement, “expressed substantial doubt” about Rocket Lab’s “ability to continue as a going concern.”
Vector Acquisition has set an Aug. 20 meeting for stockholders to vote on the proposed merger with Rocket Lab USA.
Announced in March, the transaction includes up to $320 million of cash held in Vector Acquisition’s trust account (assuming no redemptions), and a concurrent $470 million PIPE led by Vector Capital, BlackRock and Neuberger Berman and other institutional investors. Read more.
