SPAC Merger With Space Firm Momentus Threatened by SEC Fine (1)

A blank-check company’s acquisition of space-cargo firm Momentus Inc. has been dealt a serious blow by the U.S. Securities and Exchange Commission, which accused both entities of misleading shareholders just weeks before investors were slated to vote on the deal.

The regulator sued Stable Road Acquisition Corp., a special-purpose acquisition company, and Momentus over allegations that the target firm lied about its technology, including a false claim that its propulsion system had been “successfully tested” in space. Stable Road repeated Momentus’s misleading statements in public filings, while failing to conduct adequate due diligence of the company, the SEC ...