Space SPAC Jumps on Deal for Redwire By Investing.com

By Dhirendra Tripathi

Investing.com – Genesis Park Acquisition (NYSE:GNPK) shares rose 3% on Thursday following news that space infrastructure provider Redwire will merge with the special purpose acquisition company.

Genesis Park Acquisition raised $166 million through its November 2020 initial public offering.

Redwire provides space infrastructure technology and services. The combined company will retain the Redwire name and is expected to trade on the NYSE.

A SPAC is a blank-check shell company that uses proceeds from an IPO to take private firms public. It is usually set up by high profile people with relevant industry experience and that’s what gets it the valuation since as such it doesn’t have running operations at the time of going public.

The booming private space industry is projected to grow 4x by 2040, driven by lower launch costs and greater national security requirements.