SPAC began trading on Nasdaq as a letterbox company in March and raised $ 345 million from investors in an effort to find a compelling merger target. Regulators and SPAC shareholders have yet to approve the deal, which is valued at $ 1.2 billion by Tomorrow.io, based in Boston.
The amount of funds that Tomorrow.io will raise from the transaction will depend on the redemption rate at which SPAC shareholders are calling for their money back instead of shares in the merged company. The proceeds will support plans for a constellation of around 32 small satellites that Tomorrow.io says will be equipped with storm tracking radars to improve weather forecasting.
The funds Tomorrow.io intends to raise include a fully committed private investment in public equity, or PIPE, a $ 75 million round of funding from institutional investors. These investors include funds created by Koch Strategic Platforms, National Grid Partners, JetBlue Technology Ventures, and SB Energy Corp. , a subsidiary of Japanese internet giant SoftBank. California-based Astro Digital is building the first two spacecraft for a launch late next year.
The payback rates have been mixed for space SpaC mergers. Spire Global posted a repayment rate of about 90% on the eve of its IPO, while Planet is scheduled to trade on the New York Stock Exchange on December 8th after a repayment rate of about 2%. SPAC shareholders will decide whether to return their shares and get their investments back before the merger is complete, the step before the combined company goes public on a public exchange.
Tomorrow.io’s customers include Uber Technologies, Ford Motor Company, Delta Air Lines, JetBlue Airways, and National Grid. Tomorrow.io, which changed its name from ClimaCell after raising $ 77 million in March, is currently using data from NASA’s Global Precipitation Measurement (GPM) satellite and other sources to provide analytics for businesses heavily affected by weather conditions are affected.
“This is exactly the solution Tomorrow.io offers – a unique software offering that converts weather forecast into insights for any industry and enables customers to proactively prepare for the impact of incoming weather across their operations.” The startup recently received also signed a $ 19.3 million contract from the AFVentures program to increase US Air Force strategic funding, which focuses on capabilities that could support Department of Defense missions. “Every individual, every company and every government welcomes climate adaptation and mitigation,” said Shimon Elkabetz, Co-Founder and CEO of Tomorrow.io.
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