Seraphim Space Trust Terminates D-Orbit SpA Merger

On 12th August, Seraphim Space Trust announced that it was terminating the merger between its portfolio company, D-Orbit SpA, and SPAC Breeze Holding Corp. Seraphim stated that the condition of the financial markets felled the deal.

Seraphim intended to bring D-Orbit public through a reverse merger with the special purpose acquisition company (SPAC). The Italian firm hoped to generate $185 million from the deal to accelerate investments in ION Satellite Carrier and expand staff. 

The ION Satellite Carrier is the company’s orbital transfer vehicle (OTV). It carried out its first commercial mission toward the end of 2020. 

The “financial markets have changed substantially”

CEO of Breeze Holdings Acquisition Corp., Douglas Ramsey, cited a substantial change in the financial markets since the deal was announced on 27th January as the reason for the deal breaking down.

In particular, he pointed to the ongoing war in Ukraine, soaring inflation, and rising interest rates as contributing factors.

He added:

“As we look ahead, we remain focused on identifying another value-creating opportunity for Breeze shareholders.”

What does this mean for D-Orbit?

It’s not all doom and gloom for D-Orbit. The company revealed it delivered over 80 consumer payloads to their orbits so far in 2022, with three ION missions. D-Orbit expect to fly a further three ION missions before the conclusion of the year.

In a statement, the CEO of D-Orbit SpA, Luca Rossettini, said that the growth trajectory of the company is on track despite market issues beyond their control. 

Caterina Cazzola, a spokesperson for D-Orbit SpA, added:

“Our plan to go public is simply on hold for now, and when the time is right, we will review the opportunity for a public listing and the best strategy of doing so.”

Are SPACs a good fit?

Observers are raising questions regarding SPACs. They wonder whether early-stage space businesses are the right fit for public investors. Such firms tend to be subject to delays and are capital-intensive. 

Of the nine space businesses that completed SPAC mergers and went public last year, only Rocket Lab’s shares finished the trading year higher than their price when the merger was complete.