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A developing story in the aerospace industry highlights a bold financial maneuver involving a fledgling rocket startup and a struggling SPAC. iRocket, a New York-based reusable rocket developer, has announced plans to merge with BPGC Acquisition Corp., a special purpose acquisition company backed by former U.S. Commerce Secretary Wilbur Ross. The proposed deal claims a valuation of $400 million, but questions linger about the partnership’s viability given the SPAC’s dwindling resources.
BPGC Acquisition Corp., once holding $345 million after its 2021 IPO, now retains a mere fraction of its initial trust. SEC filings reveal that by September 2024, the SPAC had returned most of its cash to shareholders after failing to secure a merger target, leaving only $30.5 million. Just days later, another $28.8 million was redeemed, reducing the trust to a startling $1.6 million. The SPAC’s sponsors later extended its acquisition deadline to March 2026, but the severe cash shortfall raises skepticism about the feasibility of the iRocket deal.
iRocket’s journey adds another layer of uncertainty. Founded in 2018, the startup has yet to conduct a single test flight of its Shockwave launch vehicle, lagging behind competitors like Stoke Space and Firefly, which have secured stronger funding and advanced their hardware. While iRocket touts Shockwave’s potential for full reusability and rapid turnaround times, its technical ambitions remain unproven. To date, the company has raised minimal venture capital and lists only four employees on LinkedIn, alongside modest government contracts with the Air Force and Space Force.
The SPAC’s tumultuous history further complicates the situation. Formerly known as Ross Acquisition Corp II, it attempted and abandoned a merger with biopharma firm Aprinoia Therapeutics in 2023, leading to delisting threats from the NYSE. Renamed and rebranded, BPGC now faces pressure to secure a PIPE (private investment in public equity) round to finance the iRocket acquisition, as its own reserves are virtually depleted. Industry analysts question whether private investors will commit capital to a startup with no flight history in an oversaturated small launch market.
If finalized, the merger would mark a high-stakes gamble for both parties. iRocket’s success hinges on executing its ambitious technical roadmap, while BPGC must navigate regulatory scrutiny and investor skepticism. The aerospace sector watches closely to see if this unlikely pairing can defy the odds or become another cautionary tale in the SPAC era.
