Momentus Space

History

2021

Access to Nasdaq Exchange

In mid-August 2021, the space company Momentus, founded by the ex-owner of Technosila Mikhail Kokorich, entered the exchange. The company planned to debut earlier, but it was prevented by national security considerations and investor claims.

Entering the exchange was the end of the almost one-year process of merging Momentus with Stable Road Capital (SPAC). SPAC raises money from investors through an initial public offering, and then uses these funds to acquire private companies and bring them to the exchange.

The space company of the former head of Technosila Mikhail Kokorich Momentus entered the exchange

Initially, SPAC filed an application for a merger of companies in October 2020, and then it was assumed that the combined company would be able to enter the exchange in early 2021 and would be valued at $1.2 billion. In June, SPAC re-applied, lowering the startup's estimate to $700 million. The fact is that, according to regulators, Kokorich and Momentus have repeatedly deceived investors. They said that they had "successfully tested" their technology in space, although in fact, the main tasks could not be completed as part of the only space tests.

Regulators also considered that Momentus distorted information about how much national security concerns related to Kokorich would affect its ability to obtain the necessary licenses. Although Kokorich developed most Momentus technologies, under the US National Security Law, he is prohibited from accessing the inventions of a company specializing in solutions for the space industry. Given that the businessman is a citizen of Russia, in the United States he is considered a "geopolitical rival."

As a result, Kokorich was forced to leave the post of CEO of the company, transferring control to John Root, who headed the startup on August 1, 2021.^[1]

Fine of $7 million for inaccurate information for investors

In mid-July 2021, the US Securities and Exchange Commission (SEC) fined Momentus Space $7 million on charges that the company misled its investors about the success of the technologies being developed.

According to the regulator's verdict, the space startup, founded by Russian Mikhail Kokorich, provided investors with inaccurate information about Momentus technologies, as well as the risks that the company's connection with Kokorich could raise questions from regulators regarding threats to national security.

US authorities fined Russian-founded space startup Momentus Space $7 million for inaccurate information for investors

Kokorich and Momentus have repeatedly told investors that they have "successfully tested" reactive technologies in space, although in fact, during the company's only test in space, it was not possible to achieve the main tasks or demonstrate the profitability of the technology, the SEC document says.

The SEC also charged SPAC Stable Road Acquisition and its CEO Brian Cabot. With the help of this company, Momentus Space was going to enter the exchange in early 2021 Nasdaq , bypassing the traditional procedure. IPO The Commission emphasized that the firm, under the leadership of Cabot, had talked about conducting an extensive comprehensive test verification, although it had never considered them. The release date of Momentus Space on the exchange was postponed to August 2021.

As the portal The Verge explains in turn, the US authorities were concerned that Momentus technologies could be in the hands of foreign opponents, as a result of which a long investigation began, since Kokorich is a Russian.

As for fines, by July 14, 2021 they were paid by all persons involved in the case, except Kokorich, notes The Verge. The SEC filed a lawsuit against Kokorich personally, accusing him of fraud.^[2]

Dismissal of Mikhail Kokorich from the post of general director of Momentus Space

At the end of January 2021, the American space company Momentus Space announced the resignation of its founder Mikhail Kokorich as CEO. The former head of Technosila was forced to be fired due to his legal status in the United States. More details here.

Notes