Intuitive Machines' SPAC Raises Less Money! Will This Affect Its Lunar Ambitions?

Intuitive Machines, an American company that aims to allow humans to visit the moon, finally completed its merger with a SPAC (special purpose acquisition company).

However, the lunar service provider raised far less money than expected.

The merger with Inflection Point Acquisition Corp., a NASDAQ-trading SPAC, was completed on Feb. 13.

The SPACE trust that Intuitive Machines acquired is expected to generate only around $300 million in dry powder. Will this affect the company's lunar ambitions?

Intuitive Machines' SPAC Raises Less Money!

According to Tech Crunch's latest report, high redemptions caused the SPAC trust to raise less money.

Although this is the case, experts said that Intuitive Machines is not really running out of budget.

This is because the lunar company's shareholders decided to roll their equity holdings into the combined company at a value of $700 million.

They decided to do this before the merger with Inflection Point Acquisition Corp. was completed. Aside from this, a $55 million capital was also raised from an affiliate of the SPAC, as well as $26 million in PIPE.

Thanks to the SPAC merger, Intuitive Machines can soon start trading on NASDAQ under the ticker symbol LUNR. This will allow the company to attract more investors so that it bounces back.

What is Intuitive Machines?

For those who are not familiar with this lunar company, Intuitive Machines is a startup located in Houston, Texas.

On its official website, the company explained that they provide lunar orbit delivery, lunar surface access, and lunar distance communication services.

"Intuitive Machines' Lunar Payload Delivery Services (LPDS) program opens access to the Moon for the progress of humanity," said the lunar startup.

Intuitive Machines added that NASA chose its LDPS program for three lunar missions.

As the independent space agency and other aerospace companies make effort to visit Earth's natural satellite, the lunar startup's LPDS program is expected to attract more clients.

Other stories about business tech that we recently wrote:

Previously, Cash Cloud filed for bankruptcy as Bitcoin ATMs face a downturn.

We also reported about a new collaboration between OpenAI and a foodtech startup.

For more news updates about Intuitive Machines and other startups, always keep your tabs open here at TechTimes.