Failed Moonshot?

SEC Charges Stable Road SPAC and Space Startup Momentus with Misleading Claims.

The SEC announced on Tuesday that it charged blank-check company Stable Road Acquisition Corp (SRAC.O), its sponsor SRC-NI, space exploration company Momentus Inc and two executives for misleading claims over their planned merger.

The SEC said the companies and Stable Road Acquisition Company Chief Executive Brian Kabot agreed to pay $8 million to resolve allegations they misled investors about Momentus Inc.'s technology and national security risks associated with its former CEO Mikhail Kokorich.

The entities, settled with the SEC without admitting or denying the allegations. An attorney for Kokorich, who is fighting the SEC's charges in court, said his client "looks forward to a resolution of this matter which is favorable to him."

This marks the latest escalation in the SEC's crackdown on Wall Street's special purpose acquisition company, or SPAC, frenzy, which has reached a record over $100 billion this year.

The SEC's action is the first targeting all sides of a SPAC transaction as well as executives in an investigation that took under a year, an SEC official said.

According to the SEC, Kokorich and Momentus, an early-stage space transportation company, repeatedly told investors that it had "successfully tested" its propulsion technology in space, when its only in-space test had failed to achieve its primary objectives or demonstrate the technology's commercial viability.

The regulator also alleged that Momentus and Kokorich misrepresented the extent to which national security concerns involving Kokorich undermined Momentus' ability to secure governmental licenses essential to its operations. The SEC accused Stable Road, its sponsor and Kabot of negligence-based fraud.

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[theaussiebaron]

The sarcasm is approaching mythical proportions, Patrick.
Well done.

[chinesestunna]

"Plasma rockets aren't like electric trucks where you can just push them down a hill" - Patrick
"HOLD MY VODKA" Mikhail

[Ciborium]

"He will go down in history for his various historical re-enactments."

SAVAGE BURN!

[samsonsoturian]

You've gotta be a lot of finance student's favorite professor...

[kateatl]

"It would be special if he did it in 1950" 🤣🤣🤣🤣🤣🤣🤣🤣🤣

[eigenman]

"Stable Road Acquisition Corp raised $172.5M back in November 2019 in order to buy weed" literally fell off my chair.

[lindumenzidludlu]

"This is obviously meant to be sold in Silicon Valley..." - shows picture of Theranos

[bobbyboljaar]

Deadpan comedy gold, Patrick's dry humor cracks me up every time. His lessons must look like a stand-up comedy show.

[GNBcorporal]

That fact that you can talk through this video with a straight face is a huge achievement 😂

[jtegland]

Brutal and hilarious. I loved the deadpan delivery.

[MrBumbo]

"This is designed to be sold in Silicon Valley or to stoners" Love it

[effingsix]

“My channel will degrade into me reading SEC complaints out loud with a confused look on my face.”

[MrMouray]

I have to hand it to you Patrick. The production, quality and inferences are magnificent. I was laughing for 10 minutes straight with the Stable Road clip. It's wonderful that even after being taught by you in 2015. I can still learn from you and watch your content to enrich and refresh my knowledge. Thank you

[casacara]

Physics student and propulsion enthusiast here! Had a suspicion this wasn't gonna be a happy story when you mentioned the company claimed to have a "plasma" rocket. "Plasma" rocket means literally nothing. There are many proposed or operating propulsion system with plasma as the working fluid (gases+plasmas are considered fluids), and use WILDLY different means of accelerating the plasma. It's like calling your car a "rubber powered car" because it has wheels made of rubber.

[LeonBeis]

Dry cut english humour with no hint of emotion in narrating is killing me, this is great. I could watch such videos all day. Good job really!

[samsonsoturian]

The fact you ironically moved stock pick tropes into a crime report shows how advanced the sarcasm is on this channel...

[jamesbarnes]

"Aviation re-enactments” - We come here for reality in markets and life

[shepardnathan]

“It’s lost in space” so good Patrick. Thank you

[the-selfish-meme]

Back in the South Sea Bubble, there were companies floated which claimed to be about, "A profitable endeavor upon which we have not yet settled." They sold like hotcakes.
We were taught this at school as an example of the madness that foretold the inevitable collapse.
I give you - the SPAC...

They must think we have no memory... or books... or education... and they are entirely correct.

[neonglowmusic]

The more you let your personality and humor show through, the more I enjoy your presentation. Super informative stuff.

It's amazing how good these lesser-known channels can be.